Overview and trading tips on EUR/USD

The test of 1.0770 in the first half of the day occurred at a time when the MACD indicator was just beginning to move down from the zero mark. This confirmed the correct entry point to sell the euro. However, EUR/USD did not actually fall. As a result, stop losses were activated and traders incurred losses on short positions. Reports on the eurozone countries did not greatly influence the sentiment of sellers, which limited the downward potential of EUR/USD in the course of the bear market development. In the second half of the day, buyers of risky assets may even enter the market on a few conditions. This requires weak statistics from the US, in particular, the PCE price index, changes in personal spending, and changes in personal income. The dovish rhetoric of FOMC member Mary Daly and Fed Chairman Jerome Powell will also come in handy for euro buyers. As for the intraday strategy, I will rely more on scenarios No 1 and No 2.

Buy signals

Scenario No. 1. Today I plan to buy the euro when EUR/USD reaches around 1.0794, potted by the green line on the chart, reckoning growth to the level of 1.0834. At the level of 1.0834, I will exit the market and also sell the euro in the opposite direction, counting on a movement of 30-35 pips from the entry point. Traders can count on the growth of the euro today only after downbeat statistics for the United States. Important! Before buying, make sure that the MACD indicator is above the zero mark and is just starting to rise from it.

Scenario No. 2. I also plan to buy the euro today in case of two consecutive tests of the level of 1.0766 at a time when the MACD indicator is in the oversold area. This will limit the downward potential of the instrument and lead to an upward reversal of the market. We can expect growth to the opposite levels of 1.0794 and 1.0834.

Sell signals

Scenario No. 1. I will sell the euro after EUR/USD reaches the level of 1.0766 plotted by the red line on the chart. The bearish target will be 1.0730 where I plan to exit the market and buy EUR/USD immediately in the opposite direction, bearing in mind a movement of 20-25 pips in the opposite direction from the level. The instrument will come under selling pressure in case of good statistics for the US and a hawkish stance of Fed officials regarding inflation. Important! Before selling, make sure that the MACD indicator is below the zero mark and is just starting to decline from it.

Scenario No. 2. I also plan to sell the euro today in case of two consecutive tests of the price of 1.0794 at a time when the MACD indicator is in the overbought area. This will limit the pair's upward potential and lead to a downward reversal of the instrument. We can expect a decline to the opposite level of 1.0766 and 1.0730.

What's on the chart:

The thin green line is the entry price at which you can buy the trading instrument.

The thick green line is the price where you can set Take-Profit (TP) or manually fix profits, as further growth above this level is unlikely.

The thin red line is the entry price at which you can sell the trading instrument.

The thick red line is the 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 in the cryptocurrency market need to be very cautious when making decisions to enter 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. Without setting stop orders, you can quickly lose your entire deposit, especially if you don't use money management and trade with large volumes.

Remember, for successful trading, it is necessary to have a clear trading plan, similar to the one I presented above. Spontaneously making trading decisions based on the current market situation is inherently a losing strategy for an intraday trader.