The price test at 1.1830 coincided with the MACD indicator just starting to move down from the zero mark, confirming a good entry point to sell the euro. As a result, the pair decreased by 17 pips.
Yesterday, the US dollar demonstrated renewed upward momentum. The catalyst for this growth was industrial production data that came in significantly above economists' forecasts. The January figures for industrial production pleasantly surprised, showing a growth of 0.7%. An increase in production volumes indicates strong demand and effective functioning of the industrial sector, which is critically important for overall economic prosperity.
Today, in the first half of the day, investors' attention will be drawn to several key economic indicators from the Eurozone. The European Central Bank's current account balance reflects the balance between foreign trade (exports and imports of goods and services) and capital flows. A positive balance indicates that the European economy receives more from abroad than it sends out, which is much more difficult to achieve under the new tariffs imposed by Trump.
Data on the Eurozone consumer confidence index will also be released, which has remained negative for quite some time. Optimistic consumer sentiment will lead to increased consumption and stimulate economic growth.
Attention should also be paid to the monthly report from the Bundesbank, Germany's central bank, which traditionally provides a detailed analysis of the economic state of the Eurozone's largest country. It may provide assessments of industry trends, the labor market situation, inflation expectations, and economic growth forecasts.
As for my intraday strategy, I will focus more on implementing Scenarios 1 and 2.
The thin green line represents the entry price at which one can buy the trading instrument;
The thick green line represents the approximate price where one can set Take Profit or secure profits, as further growth above this level is unlikely;
The thin red line represents the entry price at which one can sell the trading instrument;
The thick red line represents the approximate price where one can set Take Profit or secure profits, as further decline below this level is unlikely;
The MACD indicator: when entering the market, it is important to consider overbought and oversold zones.
Important: Beginner traders in the Forex market should be very careful when making entry decisions. It is best to stay out of the market before important fundamental reports are released to avoid getting caught in sharp price fluctuations. If you decide to trade during news releases, always set stop orders to minimize losses. Without setting stop orders, you can quickly lose your entire deposit, especially if you do not use money management and trade large volumes.
And remember, for successful trading, it is essential to have a clear trading plan, as outlined above. Making spontaneous trading decisions based on the current market situation is inherently a losing strategy for an intraday trader.