Analysis of transactions in the EUR / USD pair

EUR/USD hitting 1.0488 prompted a sell signal in the market, however, having the MACD line far away from zero limited the downside potential of the pair. Similarly, there were no sharp movements after euro reached 1.0514 because the MACD line was still away from zero.

Although the report of the ECB and the statements of its members did not help euro yesterday, EUR/USD rose because the speech of FOMC representatives Jerome Powell and Patrick Harker put pressure on dollar. Most likely, this bullish scenario will continue as upcoming business activity data in the eurozone will raise demand for the euro. In the afternoon, similar reports are expected in the US, but this time those will add more pressure on the dollar instead of pushing it up. The monthly report of the ECB, the summit of EU leaders and speech of Fed chairman Jerome Powell will have little to no effect on the market.

For long positions:

Buy euro when the quote reaches 1.057 (green line on the chart) and take profit at the price of 1.0637 (thicker green line on the chart). There is a chance for a rally today as most traders are counting on new weekly highs. But make sure that when buying, the MACD line is above zero or is starting to rise from it. Euro can also be bought at 1.0544, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0577 and 1.0637.

For short positions:

Sell euro when the quote reaches 1.0544 (red line on the chart) and take profit at the price of 1.0475. Pressure will return if the US reports strong economic data and 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 1.0577, but the MACD line should be in the overbought area, as only by that will the market reverse to 1.0544 and 1.0475.

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.