Trade Analysis and Tips for Trading the Euro

The price test at 1.1149 occurred when the MACD indicator had just started moving up from the zero mark, confirming the correct entry point for buying the euro. As a result, the pair moved up by more than 35 pips and reached the target level of 1.1174. I didn't sell the euro there since the U.S. trading session was nearing its end, and the trading day was almost over. Yesterday's IFO reports on the German business climate indicator, the current conditions indicator, and the economic expectations indicator disappointed, negatively affecting the euro in the first half of the day. However, the buyers managed to overcome this. Weak consumer confidence reports from the U.S. helped the bulls, resulting in a surge in EUR/USD. Unfortunately, there's no significant data from the Eurozone today, so the upward trend could easily continue. Regarding the intraday strategy, I will mainly rely on implementing scenarios Nos. 1 and 2.

Buy Signal

Scenario No. 1: Today, you can buy the euro when the price reaches around 1.1205 (green line on the chart) with a target of rising to the 1.1240 level. At 1.1240, I plan to exit the market and sell the euro in the opposite direction, aiming for a movement of 30-35 pips from the entry point. The euro's growth today can be expected in the first half of the day as the upward trend continues. Important! Before buying, ensure the MACD indicator is above the zero mark and starting to rise.

Scenario No. 2: I also plan to buy the euro today if the price tests 1.1186 twice in a row when the MACD indicator is in the oversold area. This will limit the pair's downside potential and lead to an upward market reversal. You can expect growth toward the opposite levels of 1.1205 and 1.1240.

Sell Signal

Scenario No. 1: I plan to sell the euro after reaching the 1.1186 level (red line on the chart). The target will be 1.1157, where I plan to exit the market and buy immediately in the opposite direction (aiming for a movement of 20-25 pips in the opposite direction from the level). The pressure on the pair will return today if there's a failed attempt to rise beyond the daily high. Important! Before selling, make sure the MACD indicator is below the zero mark and starting to decline from it.

Scenario No. 2: I also plan to sell the euro today in case of two consecutive tests of the 1.1205 price when the MACD indicator is in the overbought area. This will limit the pair's upward potential and lead to a market reversal downward. A decline to the opposite levels of 1.1186 and 1.1157 can be expected.

What's on the Chart:

Thin green line: the entry price at which you can buy the trading instrument.

Thick green line: the estimated price at which you can set Take Profit or manually secure profits, as further growth above this level is unlikely.

Thin red line: the entry price at which you can sell the trading instrument.

Thick red line: an estimated price at which you can set Take Profit or manually secure profits, as further decline below this level is unlikely.

MACD indicator: when entering the market, it is essential to be guided by overbought and oversold zones.

Important: Novice traders in the forex market must be very cautious when deciding to enter the market. It is best to stay out of the market before important fundamental reports are released to avoid sharp price fluctuations. If you choose 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 don't use money management and trade in large volumes.

Remember, a clear trading plan, like the one I've outlined, is essential for successful trading. Making impulsive decisions based on the current market situation is a losing strategy for novice intraday traders.