Analysis of Trades and Trading Tips for the Euro

The test of the 1.0469 price level coincided with the MACD indicator starting to move upward from the zero mark. Combined with strong Eurozone data, this helped confirm the decision to buy the euro in continuation of the bullish trend. As a result, the euro rose by 40 points, reaching the target of 1.0513.

The IFO data from Germany was encouraging, but now poor U.S. data is required to maintain this momentum. If the data confirms a weakening trend in the U.S. primary housing market, it could negatively impact the U.S. dollar, reinforcing investor expectations of a potential slowdown in the American economy. In this case, the euro may gain additional strength. Conversely, if the data is strong, euro traders might face some pressure as positions are reevaluated. Improvements in the housing market often signal broader economic stabilization in the U.S., which could shift currency dynamics. Housing market data often serves as a barometer for economic activity, and weak figures may raise concerns about slower U.S. growth, influencing market sentiment.

For intraday trading strategies, I will rely more on implementing Scenario #1 and #2.

Buy Signal

Scenario #1: Today, buying the euro is planned at the 1.0531 level (green line on the chart) with a target of rising to 1.0583. At the 1.0583 level, I plan to exit the market and sell the euro in the opposite direction, aiming for a movement of 30-35 points from the entry point. Counting on the euro's growth today is possible only if U.S. data is weak.Important! Before buying, ensure that the MACD indicator is above the zero mark and just beginning to rise from it.

Scenario #2: I also plan to buy the euro in case of two consecutive tests of the 1.0491 level when the MACD indicator is in the oversold area. This will limit the pair's downward potential and lead to a market reversal upward. Growth can be expected to the opposite levels of 1.0531 and 1.0583.

Sell Signal

Scenario #1: I plan to sell the euro after reaching the 1.0491 level (red line on the chart). The target will be the 1.0439 level, where I plan to exit the market and immediately buy in the opposite direction, aiming for a movement of 20-25 points in the opposite direction. Pressure on the pair can return at any moment.Important! Before selling, ensure that the MACD indicator is below the zero mark and just beginning to decline from it.

Scenario #2: I also plan to sell the euro today in case of two consecutive tests of the 1.0531 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 1.0491 and 1.0439 can be expected.

Chart Details

• Thin Green Line: Entry price for buying the trading instrument.
• Thick Green Line: Projected price for placing Take Profit orders or manually fixing profits, as further growth above this level is unlikely.
• Thin Red Line: Entry price for selling the trading instrument.
• Thick Red Line: Projected price for placing Take Profit orders or manually fixing profits, as further declines below this level are unlikely.
• MACD Indicator: When entering the market, it is crucial to follow overbought and oversold zones.

Important Notes for Beginner Forex Traders

Beginner traders should exercise extreme caution when making market entry decisions. Before the release of significant fundamental reports, it is best to stay out of the market to avoid sharp price fluctuations. If you decide to trade during news releases, always place stop-loss orders to minimize losses. Without stop-loss orders, you can quickly lose your entire deposit, especially if you trade large volumes without proper money management.

Remember that successful trading requires a clear trading plan, like the one presented above. Making spontaneous trading decisions based on the current market situation is inherently a losing strategy for intraday traders.