Analysis of transactions in the EUR / USD pair

A signal to buy emerged after EUR/USD hit 1.1054. However, the quote could not increase much because the MACD line being far from zero limited the upside potential of the pair. Some time after, the same level was tested, but this time the market signal was to sell. Since the MACD line was in the oversold area, the pair fell by 30 pips and went to 1.1027. The test of that level in the afternoon was unsuccessful because the MACD line was again far from zero.

There are no EU statistics scheduled to be released today, so volatility will most likely be restrained. However, yesterday's statements by the Fed will support the dollar, which will lead to a further decrease in EUR/USD to local lows. As such, it is best to sell in the market, especially amid escalating tensions in Ukraine.

For long positions:

Buy euro when the quote reaches 1.1003 (green line on the chart) and take profit at the price of 1.1047 (thicker green line on the chart). A rally is possible today, but it will be quite difficult to trigger given the current situation. Nevertheless, before buying, make sure that the MACD line is above zero or is starting to rise from it. It is also possible to buy at 1.0971, but the MACD line should be in the oversold area as only by that will the market reverse to 1.1003 and 1.1047.

For short positions:

Sell euro when the quote reaches 1.0971 (red line on the chart) and take profit at the price of 1.0923. Pressure is likely to return at any moment because market participants prefer safe assets than risky ones at the moment. But before selling, make sure that the MACD line is below zero, or is starting to move down from it. Euro can also be sold at 1.1003, however, the MACD line should be in the overbought area, as only by that will the market reverse to 1.0971 and 1.0923.

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 decisions based on the current market situation is an inherently losing strategy for an intraday trader.