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Analysis of transactions in the EUR / USD pair
A signal to buy emerged after EUR/USD hit 1.1094. However, the quote could not increase much because the MACD line being far from zero limited the upside potential of the pair. The same thing happened with the sell signal at 1.1068, so even if the pair continued to fall, the downside potential was limited. In the afternoon, another buy signal appeared at 1.1026, but after moving up by 11 pips, EUR/USD declined again.
There are no EU statistics scheduled to be released today, so volatility will be restrained in the morning. Most likely, buyers will attempt to win back part of Friday's fall, so a lot will depend on their behavior around 1.1054. The Bundesbank's monthly report scheduled for today will be the one that will allow them to overcome that level.
In the afternoon, no statistics could put pressure back on risky assets because the situation in Ukraine is worsening again.
For long positions:
Buy euro when the quote reaches 1.1054 (green line on the chart) and take profit at the price of 1.1093 (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 1.1027, but the MACD line should be in the oversold area as only by that will the market reverse to 1.1054 and 1.1093.
For short positions:
Sell euro when the quote reaches 1.1027 (red line on the chart) and take profit at the price of 1.0985. 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 1.1054, however, the MACD line should be in the overbought area, as only by that will the market reverse to 1.1027 and 1.0985.
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.
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