Further decline became limited because the test of 1.0856 occurred during the sharp downward move of the MACD line from zero.
Data on Germany's consumer climate, M3 money supply aggregate in the eurozone, and private sector lending volume provoked a rise in euro in the morning. However, news indicating an increase in US spending fueled dollar demand, leading to a decline in the pair. Today, apart from the speech of ECB Vice President Luis de Guindos, no other interesting news will come out, although the statement may not have much impact on market direction.
For long positions:
Buy when euro hits 1.0858 (green line on the chart) and take profit at the price of 1.0886. Growth may not occur, so the pair will stay within the horizontal channel.
When buying, make sure that the MACD line lies above zero or rises from it. Euro can also be bought after two consecutive price tests of 1.0835, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0858 and 1.0886.
For short positions:
Sell when euro reaches 1.0835 (red line on the chart) and take profit at the price of 1.0810. However, be cautious as bears may refrain from active actions after updating the daily low due to the low market volatility.
When selling, make sure that the MACD line lies under zero or drops down from it. Euro can also be sold after two consecutive price tests of 1.0858, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0835 and 1.0810.
What's on the chart:
Thin green line - entry price at which you can buy EUR/USD
Thick green line - estimated price where you can set Take-Profit (TP) or manually fix profits, as further growth above this level is unlikely.
Thin red line - entry price at which you can sell EUR/USD
Thick red line - estimated price where you can set Take-Profit (TP) or manually fix profits, as further decline below this level is unlikely.
MACD line- it is important to be guided by overbought and oversold areas when entering the market
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.The material has been provided by InstaForex Company - www.instaforex.com
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