Trade Analysis and Trading Tips for the Euro

The 1.0322 price test occurred when the MACD indicator was just starting to move downward from the zero level, confirming a valid sell entry for the euro. As a result, the pair moved down by approximately 15 points, but that was the extent of the movement.

Euro sellers became more active in the second half of the day, reacting to U.S. trade tariffs.Uncertainty in Washington's trade policy pushed investors away from risk assets like the euro and toward safe-haven assets, such as the U.S. dollar and the Japanese yen. Additional pressure on the euro came from weak economic data from the Eurozone, which was released earlier in the day.

For today, there are no major economic reports from the Eurozone, which increases the chances of euro appreciation during the European session. The absence of economic releases leaves room for speculative movements, fueled by yesterday's bullish momentum. However, keep in mind that the lack of data also means a lack of catalysts for sustained growth.

For my intraday strategy, I will focus primarily on the execution of Scenarios #1 and #2.

Buy Scenarios

Scenario #1: Buying the euro today is possible at 1.0328 (green line on the chart) with an upside target of 1.0374. At 1.0374, I plan to exit the trade and consider selling the euro in the opposite direction, expecting a 30-35 point retracement. A euro rally in the first half of the day could be part of a technical correction.

Important! Before buying, ensure that the MACD indicator is above the zero mark and just starting to rise.

Scenario #2: Another buying opportunity for the euro arises if the price tests 1.0299 twice while the MACD indicator is in the oversold zone. This scenario would limit the pair's downside potential and trigger a bullish reversal. Target levels: 1.0328 and 1.0374.

Sell Scenarios

Scenario #1: Selling the euro is planned after the price reaches 1.0299 (red line on the chart) with a target at 1.0258. At 1.0258, I will exit the trade and enter a buy position, aiming for a 20-25 point retracement. Selling pressure could return at any moment. Important! Before selling, ensure that the MACD indicator is below the zero mark and just starting to decline.

Scenario #2: Another selling opportunity for the euro is possible if the price tests 1.0328 twice while the MACD indicator is in the overbought zone. This scenario would limit the pair's upward potential and trigger a bearish reversal. Target levels: 1.0299 and 1.0258.

Chart Breakdown

• Thin Green Line – Entry price for buying the asset.
• Thick Green Line – Suggested Take Profit level or an area where traders may secure profits, as further upside is unlikely.
• Thin Red Line – Entry price for selling the asset.
• Thick Red Line – Suggested Take Profit level or an area where traders may secure profits, as further downside is unlikely.
• MACD Indicator – When entering trades, consider overbought and oversold zones.

Important Notes for Beginner Forex Traders

• Be extremely cautious when making entry decisions. It is best to stay out of the market before the release of key fundamental reports to avoid sudden price swings.
• Always use stop-loss orders when trading during news releases to minimize losses. Without stop-loss protection, you could quickly lose your entire deposit, especially if you trade large volumes without risk management.
• A clear trading plan is essential for success. Following a structured strategy, like the one outlined above, helps maintain discipline.
• Avoid making impulsive trading decisions based on short-term market movements, as this is a losing strategy for intraday traders.