Analysis of Trades and Trading Tips for the Euro

The price test at 1.0469 occurred when the MACD indicator had just started moving downward from the zero mark. This confirmed the correct entry point for selling the euro and resulted in a decline toward the target level of 1.0436.

The strengthening of the dollar has further pressured the euro, which is already facing challenges due to uncertainties over energy supplies and concerns about a potential recession. Recent minutes from the European Central Bank meeting indicated the possibility of interest rate cuts in the near future.

Today, traders are likely to continue monitoring economic data from the eurozone to evaluate the likelihood of these rate cuts. Special attention will be given to the differences between the German and French economies. If Germany shows signs of slowing down while France exhibits moderate growth, it could prompt a reassessment of the eurozone's overall resilience.

Geopolitical factors should not be overlooked either. The escalation of trade conflicts, similar to yesterday's market movements, could further pressure the euro.

I will rely primarily on Scenario #1 and Scenario #2 for today's intraday strategy.

Buy Signal

Scenario #1: Buying the euro around 1.0407 (green line on the chart) with a target of 1.0449. At 1.0449, I plan to exit the market and sell in the opposite direction, expecting a movement of 30-35 pips from the entry point. A euro rally in the first half of the day is only likely with strong economic data from Germany and France. Before entering a buy trade, ensure the MACD is above the zero mark and starting to rise.

Scenario #2: Another buying opportunity arises if the price tests 1.0383 twice while the MACD is in oversold territory. This would limit the pair's downside potential and trigger a market reversal to the upside. A rise to the opposite levels of 1.0407 and 1.0449 can be expected.

Sell Signal

Scenario #1: Selling the euro upon reaching 1.0383 (red line on the chart), with a target of 1.0341, where I plan to exit the market and immediately buy in the opposite direction, aiming for a 20-25 pip reversal. Selling pressure will return if economic data is weak. Before selling, ensure the MACD is below the zero mark and beginning to decline.

Scenario #2: Selling is planned if the price tests 1.0407 twice while the MACD is overbought territory. This would limit the pair's upside potential and lead to a reversal downward. A decline to the opposite level of 1.0383 and 1.0341 can 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.