Analysis of transactions in the EUR / USD pair

A signal to sell emerged after EUR/USD hit 1.0786. However, there was no sharp decrease because the MACD line being far from zero limited the downside potential of the pair. No other signal appeared for the rest of the day.

Volatility was quite low yesterday because most trading platforms are still closed amid Easter Monday. Movement occurred only in the afternoon, after the release of the NAHB housing market index and speech by FOMC member James Bullard.

No statistics are expected in the Euro area today, so EUR/USD may experience another sell-off and decline. If it returns to monthly lows, then bulls will have little to no chance of getting ahold of the market. In the afternoon, the US will release a report on building permits and new foundations, but it is unlikely to significantly affect the market. A stable situation though will be a good sign of a healthy economy. The upcoming speech of FOMC member Charles Evans will have a positive impact on the dollar, provided that it indicates a more aggressive attitude of the Fed towards monetary policy.

For long positions:

Buy euro when the quote reaches 1.0790 (green line on the chart) and take profit at the price of 1.0831 (thicker green line on the chart). However, a further increase is unlikely today because markets are full of pessimism amid more aggressive US policy and geopolitical tensions. In any case, when buying, make sure that the MACD line is above zero or is starting to rise from it. It is also possible to buy at 1.0765, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0790 and 1.0831.

For short positions:

Sell euro when the quote reaches 1.0765 (red line on the chart) and take profit at the price of 1.0720. Pressure is likely to return because risk appetite is seriously deteriorating. But before selling, make sure that the MACD line is below zero, or is starting to move down from it. Euro can also be sold at 1.0790, however, the MACD line should be in the overbought area, as only by that will the market reverse to 1.0765 and 1.0720.

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 decisions based on the current market situation is an inherently losing strategy for an intraday trader.