Analysis of transactions in the EUR / USD pair

Euro tested 0.9978 at the time when the MACD was far from zero, which limited the upside potential of the pair. No other signals appeared for the rest of the day.

The eurozone's foreign trade balance did not affect markets. Instead, it was the statements of ECB Vice President Luis de Guindos that prompted buyers to strengthen their positions, confirming the market's expectations of further aggressive policy by the European Central Bank. US data on retail sales also put pressure on dollar.

A report on Italy and the Euro area's consumer price index will be released today, which will affect the decision of the ECB over interest rates. An increase in the figures will lead to further rate hikes, which will result in the rise of euro, albeit at a short moment. There is nothing important in the afternoon except for the report on consumer sentiment and inflation expectations in the US. Growth is expected, but it is unlikely to affect the market. This means that trading will remain in a narrow sideways channel until the end of the week.

For long positions:

Buy euro when the quote reaches 1.0003 (green line on the chart) and take profit at the price of 1.0038. Growth will occur if inflationary pressure intensifies in the Euro area.

Take note that when buying, the MACD line should be above zero or is starting to rise from it. Euro can also be bought at 0.9977, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0003 and 1.0038.

For short positions:

Sell euro when the quote reaches 0.9977 (red line on the chart) and take profit at the price of 0.9940. Pressure will return amid an unsuccessful attempt of buyers to get out of the upper border of the side channel at 1.0010

Take note that when selling, the MACD line should be below zero or is starting to move down from it. Euro can be sold at 1.0003, but the MACD line should be in the overbought area as only by that will the market reverse to 0.9977 and 0.9940.

What's on the chart:

The thin green line is the key level at which you can place long positions in the EUR/USD pair.

The thick green line is the target price, since the quote is unlikely to move above this level.

The thin red line is the level at which you can place short positions in the EUR/USD pair.

The thick red line is the target price, since the quote is unlikely to move below this level.

MACD line - when entering the market, it is important to be guided by the overbought and oversold zones.

Important: Novice traders need to be very careful when making decisions about entering the market. Before the release of important reports, it is best to stay out of the market to avoid being caught in sharp fluctuations in the rate. If you decide to trade during the release of news, then always place stop orders to minimize losses. Without placing stop orders, you can very quickly lose your entire deposit, especially if you do not use money management and trade large volumes.

And remember that for successful trading, you need to have a clear trading plan. Spontaneous trading decision based on the current market situation is an inherently losing strategy for an intraday trader.