Analysis of transactions in the EUR / USD pair
EUR/USD hitting 1.0534 prompted a buy signal in the market. Coincidentally, the MACD line was moving above zero, so the pair rose by more than 40 pips. No other signal appeared for the rest of the day.
Yesterday's lack of statistics led to a slight rally in EUR/USD in the morning, but the speech of Fed member Loretta Mester helped offset the pressure on the dollar, eventually leading to the pair's decline.
The ECB's decision on monetary policy will be released today, followed by speeches from its representatives. But the market will react more to the statements of FOMC members Jerome Powell and Patrick Harker as an aggressive tone will strengthen demand for dollar and decrease risk appetite.
For long positions:
Buy euro when the quote reaches 1.0514 (green line on the chart) and take profit at the price of 1.0564 (thicker green line on the chart). There is little chance for a rally today, that is, when Powell's statements turn the market around and weaken dollar demand. But make sure that when buying, the MACD line is above zero or is starting to rise from it. It is also possible to buy at 1.0488, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0514 and 1.0564.
For short positions:
Sell euro when the quote reaches 1.0488 (red line on the chart) and take profit at the price of 1.0439. Pressure will return if the Fed takes an aggressive approach on monetary policy. However, when selling, make sure that the MACD line is below zero or is starting to move down from it. Euro can also be sold at 1.0514, but the MACD line should be in the overbought area, as only by that will the market reverse to 1.0488 and 1.0439.
What's on the chart:
The thin green line is the key level at which you can place long positions in the EUR/USD pair.
The thick green line is the target price, since the quote is unlikely to move above this level.
The thin red line is the level at which you can place short positions in the EUR/USD pair.
The thick red line is the target price, since the quote is unlikely to move below this level.
MACD line - when entering the market, it is important to be guided by the overbought and oversold zones.
Important: Novice traders need to be very careful when making decisions about entering the market. Before the release of important reports, it is best to stay out of the market to avoid being caught in sharp fluctuations in the rate. If you decide to trade during the release of news, then always place stop orders to minimize losses. Without placing stop orders, you can very quickly lose your entire deposit, especially if you do not use money management and trade large volumes.
And remember that for successful trading, you need to have a clear trading plan. Spontaneous trading decision based on the current market situation is an inherently losing strategy for an intraday trader.