Trade Analysis and Advice for Trading the Euro

The price test at 1.1031 occurred when the MACD indicator started moving down from the zero mark, confirming the correct entry point for selling the euro. As a result, the pair dropped by 15 pips, after which the pressure eased. We did not reach the target level of 1.1005, so no other market entry points were available. Yesterday, Germany's Consumer Price Index and Italy's industrial production report matched economists' forecasts, so it did not support the euro. There is no Eurozone data today, so the focus will shift to the second half of the day and important U.S. reports, which we will discuss in more detail later. For now, the euro has the potential to sustain its growth observed during the Asian session, but do not forget about the European Central Bank meeting tomorrow and the interest rate cut, which will likely limit the pair's upward potential. As for the intraday strategy, I will rely more on the realization of scenarios No. 1 and 2.

Buy Signal

Scenario No 1: Today, I plan to buy the euro when the price reaches the 1.1057 area (green line on the chart) with a growth target of 1.1088. At 1.1088, I plan to exit the market and sell the euro in the opposite direction, expecting a movement of 30-35 pips from the entry point. A continuation of the upward correction could support the euro's growth in the first half of the day. Important! Before buying, ensure the MACD indicator is above the zero level and starting its upward movement.

Scenario No 2: I also plan to buy the euro today if there are two consecutive tests of the 1.1038 price level when the MACD indicator is in the oversold area. This will limit the pair's downward potential and lead to an upward market reversal. Growth can be expected to the opposite levels of 1.1057 and 1.1088.

Sell Signal

Scenario No 1: I plan to sell the euro after it reaches the 1.1038 level (red line on the chart). The target will be the 1.1010 level, where I plan to exit the market and immediately buy in the opposite direction (expecting a movement of 20-25 pips in the opposite direction from the level). Pressure on the pair will return today if there is a failed attempt at correction in the first half of the day. Important! Before selling, make sure the MACD indicator is below the zero mark and just starting its downward movement.

Scenario No 2: I also plan to sell the euro today if there are two consecutive tests of the 1.1057 level when the MACD indicator is in the overbought area. This will limit the pair's upward potential and lead to a market reversal downward. A decline to the opposite levels of 1.1038 and 1.1010 can be expected.

What's on the Chart:

Thin green line: the entry price at which you can buy the trading instrument.

Thick green line: the estimated price at which you can set Take Profit or manually close positions, as further growth above this level is unlikely.

Thin red line: the entry price at which you can sell the trading instrument.

Thick red line: an estimated price at which you can place Take Profit or manually close positions, as further decline below this level is unlikely.

MACD indicator: when entering the market, it is essential to be guided by overbought and oversold zones.

Important: Novice traders in the forex market need to be very careful when making decisions about entering the market. It is best to stay out of the market before important fundamental reports are released to avoid getting caught in sharp price fluctuations. If you decide to trade during news releases, always place stop orders to minimize losses. You must set stop orders to avoid losing your entire deposit, especially if you don't use money management and trade in large volumes.

Remember, a clear trading plan, like the one I've outlined, is essential for successful trading. Making impulsive decisions based on the current market situation is a losing strategy for novice intraday traders.