24.03.202309:03 Forex Analysis & Reviews: Analysis and trading tips for EUR/USD on March 24

Analysis of transactions and tips for trading EUR/USD

The pair tested 1.0893 at a time when the MACD line was far from zero, limiting the downside potential of the pair. No other market signal appeared for the rest of the day.

Consumer confidence in the Euro area disappointed traders, which is why EUR/USD fell and a further downward correction is looming. Most likely, a similar momentum will be seen today as there is little chance that upcoming reports on manufacturing and service activity in both Europe and the US will support the pair. Of course, a weak reading from the latter will weaken dollar's position, which will lead to a rally in the pair.

For long positions:

Buy euro when the quote reaches 1.0845 (green line on the chart) and take profit at the price of 1.0877. Growth is possible, but it will only be after very good statistics from the eurozone. Traders have to make sure though that the MACD line is above zero or is starting to rise from it. Euro can also be bought at 1.0827, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0845 and 1.0877.

For short positions:

Sell euro when the quote reaches 1.0827 (red line on the chart) and take profit at the price of 1.0793. Pressure will return if there is no bullish activity at the daily highs. However, when selling, make sure that the MACD line is under zero or is starting to move down from it. Euro can also be sold at 1.0845, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0827 and 1.0793.

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.