Analysis of Trades and Advice on Trading the Euro

Testing the 1.0707 price level coincided with the MACD indicator trending downward from the zero line, confirming a valid entry point for selling the euro. This resulted in a decline to the target level of 1.0670, yielding a profit of approximately 40 points. Buying after the rebound from 1.0670 also delivered positive results. Despite the absence of major Eurozone economic data, volatility remained elevated.

It is likely that pressure on the pair will persist in the second half of the day, even with an empty economic calendar. However, if sellers fail to assert themselves at the start of the North American session, a correction may occur. For today's intraday strategy, I will focus on implementing Scenarios 1 and 2.

Buy Signal

Scenario 1:I plan to buy the euro at 1.0689 (green line on the chart) with a target at 1.0722. Upon reaching 1.0722, I plan to exit the market and potentially sell the euro in the opposite direction, aiming for a move of 30–35 points from the entry point. A substantial bullish movement in the euro is unlikely today.

Important: Before buying, ensure the MACD indicator is above the zero line and just starting an upward trend.

Scenario 2:Alternatively, I plan to buy the euro if the price undergoes two consecutive tests of the 1.0644 level while the MACD indicator is in the oversold zone. This setup will likely limit the pair's downward potential and result in an upward reversal. Growth toward the next levels at 1.0689 and 1.0722 can be expected.

Sell Signal

Scenario 1:I plan to sell the euro if it reaches the 1.0644 level (red line on the chart). The target will be 1.0611, where I will exit the market and potentially buy in the opposite direction, targeting a move of 20–25 points from that level. Selling pressure will likely return if the euro fails to rise at the start of the U.S. trading session.

Important: Before selling, ensure the MACD indicator is below the zero line and just beginning a downward trend.

Scenario 2:I also plan to sell the euro if the price undergoes two consecutive tests of the 1.0689 level while the MACD indicator is in the overbought zone. This setup will likely limit the pair's upward potential and lead to a downward reversal. A decline toward the next levels at 1.0644 and 1.0611 can be expected.

Chart Key

• Thin Green Line: Entry price for initiating long positions.
• Thick Green Line: Suggested price for setting Take Profit or manually securing profit, as further growth beyond this level is unlikely.
• Thin Red Line: Entry price for initiating short positions.
• Thick Red Line: Suggested price for setting Take Profit or manually securing profit, as further declines beyond this level are unlikely.
• MACD Indicator: Overbought and oversold zones should be considered when making trading decisions.

Important Notes for Beginner Forex Traders

• Exercise caution when deciding to enter the market.
• Avoid trading during major economic news releases to prevent exposure to sudden price swings.
• Always use stop-loss orders to minimize potential losses. Without stop-loss orders, you risk losing your entire deposit, particularly when trading large volumes without effective money management.
• Remember, successful trading requires a clear and structured trading plan, like the one outlined above. Making impulsive trading decisions based on current market situations often leads to losses, especially for intraday traders.