Analysis of transactions and tips for trading EUR/USD

The test of 1.0922 occurred during the drop of the MACD line from zero. This provoked a sell signal, which led to a price decrease of around 20 pips.

CPI data from Germany did not affect market dynamics, while a spike in volatility occurred after the release of US data, which indicated continued inflation growth, leading to a brief decline in the pair. Today, data on Germany's Wholesale Price Index and the eurozone's industrial production will be released, followed by a speech from ECB Executive Board member Piero Cipollone. Positive reports will likely set off a rise in euro.

For long positions:

Buy when euro hits 1.0941 (green line on the chart) and take profit at the price of 1.0974. Growth could occur in line with the continuation of the upward trend, but this will happen only amid positive data from the eurozone.

When buying, make sure that the MACD line lies above zero or rises from it. Euro can also be bought after two consecutive price tests of 1.0922, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0941 and 1.0974.

For short positions:

Sell when euro reaches 1.0922 (red line on the chart) and take profit at the price of 1.0887. Pressure will increase in the case of unsuccessful bullish activity around the daily high and weak data from Germany and the eurozone.

When selling, make sure that the MACD line lies under zero or drops down from it. Euro can also be sold after two consecutive price tests of 1.0941, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0922 and 1.0887.

What's on the chart:

Thin green line - entry price at which you can buy EUR/USD

Thick green line - estimated price where you can set Take-Profit (TP) or manually fix profits, as further growth above this level is unlikely.

Thin red line - entry price at which you can sell EUR/USD

Thick red line - estimated price where you can set Take-Profit (TP) or manually fix profits, as further decline below this level is unlikely.

MACD line- it is important to be guided by overbought and oversold areas when entering the market

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.