Analysis of Trades and Trading Tips for the Euro

The test of the 1.1693 price level coincided with the MACD indicator just beginning to move downward from the zero mark, which confirmed a valid entry point for selling the euro. As a result, the pair declined by only 10 pips, after which demand for the euro returned.

In the absence of significant economic data, the euro continued to strengthen its position, and speculation about a possible resignation of Federal Reserve Chair Powell further intensified pressure on the dollar.

Today, the only data expected from the eurozone concerns the Consumer Confidence Index. This figure is unlikely to bring any major changes. However, it's important to remember that markets are prone to sudden reversals, especially during periods of apparent calm. While not a key indicator, consumer confidence can still impact the overall picture. If the numbers fall significantly short of expectations, it could trigger a wave of selling and lead to a correction in the euro. Additionally, external factors must be taken into account. European Central Bank interest rate decisions, as well as EU-U.S. trade negotiations, will play a crucial role in the coming days.

For intraday strategy, I will focus primarily on Scenarios #1 and #2.

Buy Scenario

Scenario #1: Today, I plan to buy the euro upon reaching the 1.1749 level (indicated by the green line on the chart), targeting a rise to 1.1794. At the 1.1794 point, I intend to exit the market and sell the euro in the opposite direction, aiming for a 30–35 pip move from the entry point. The expected growth is in line with the prevailing trend.

Important: Before buying, ensure the MACD indicator is above the zero mark and is just beginning to rise from it.

Scenario #2: I also plan to buy the euro today if the 1.1725 level is tested twice in a row while the MACD indicator is in oversold territory. This would limit the pair's downside potential and lead to a reversal to the upside. Growth toward 1.1749 and 1.1794 can then be expected.

Sell Scenario

Scenario #1: I plan to sell the euro once it reaches the 1.1725 level (indicated by the red line on the chart). The target is 1.1684, where I intend to exit the market and open a buy position in the opposite direction, expecting a 20–25 pip retracement. Selling pressure could return at any time today.

Important: Before selling, ensure the MACD indicator is below the zero mark and is just beginning to fall from it.

Scenario #2: I also plan to sell the euro today if the 1.1749 level is tested twice in a row while the MACD indicator is in overbought territory. This would limit the pair's upside potential and trigger a downward reversal. A drop to 1.1725 and 1.1684 can then be expected.

What's on the Chart:

• The thin green line represents the entry price where the trading instrument can be bought.
• The thick green line indicates the expected price level where a Take Profit order can be placed, or profits can be manually secured, as further price growth above this level is unlikely.
• The thin red line represents the entry price where the trading instrument can be sold.
• The thick red line indicates the expected price level where a Take Profit order can be placed, or profits can be manually secured, as further price decline below this level is unlikely.
• The MACD indicator should be used to assess overbought and oversold zones when entering the market.

Important Notes:

• Beginner Forex traders should exercise extreme caution when making market entry decisions. It is advisable to stay out of the market before the release of important fundamental reports to avoid exposure to sharp price fluctuations. If you choose to trade during news releases, always use stop-loss orders to minimize potential losses. Trading without stop-loss orders can quickly wipe out your entire deposit, especially if you neglect money management principles and trade with high volumes.
• Remember, successful trading requires a well-defined trading plan, similar to the one outlined above. Making impulsive trading decisions based on the current market situation is a losing strategy for intraday traders.