Analysis of transactions in the EUR / USD pair

Euro tested 1.0018 at the time when the MACD was far from zero, which should have limited the downside potential of the pair. Surprisingly, the quote continued to fall and reached 0.9969, which was a good opportunity to buy. But purchases around the level did not end with large profit as the pair did not increase as expected.

Pressure on EUR/USD remained because there were no important statistics yesterday and the outlook for the global economy continued to be negative. It is likely that this bearish dynamics will extend to today as upcoming reports on the Euro area, in particular, the business activity index in the service sector and composite PMI in the eurozone, will prompt new waves of sell-offs. ECB Board member Fabio Panetta is also expected to speak, followed by a report on the eurozone's consumer confidence. In the afternoon, similar data will be coming from the US, but it is unlikely to harm dollar. Only a weak home sales report can shake the market as that will indicate the onset of a recession.

For long positions:

Buy euro when the quote reaches 0.9936 (green line on the chart) and take profit at the price of 0.9975. Demand will rise if statistics from the Euro area exceed expectations.

Take note that when buying, the MACD line should be above zero or is starting to rise from it. Euro can also be bought at 0.9900, but the MACD line should be in the oversold area as only by that will the market reverse to 0.9936 and 0.9975.

For short positions:

Sell euro when the quote reaches 0.9900 (red line on the chart) and take profit at the price of 0.9864. Pressure will continue if statistics from the Euro area fell short of forecasts.

Take note that when selling, the MACD line should be below zero or is starting to move down from it. Euro can also be sold at 0.9936, but the MACD line should be in the overbought area, as only by that will the market reverse to 0.9900 and 0.9864.

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.