Analysis of Trades and Trading Tips for the Euro

The test of the 1.0412 price level occurred when the MACD indicator had already moved significantly above the zero mark, which limited the upward potential of the currency pair. For this reason, I chose not to buy the euro, as no other entry points into the market presented themselves.

In the current environment of uncertainty, largely due to the lack of economic data, traders are likely to proceed with caution. This may result in currency pairs, especially those involving the euro, remaining within narrow ranges. A horizontal channel could provide a basis for analyzing future market movements, enabling traders to develop strategies based on current price fluctuations and levels of volatility. However, most of these strategies are likely to be implemented only after the New Year holidays. As noted in the economic calendar, there is no significant economic data for the eurozone again today, so we should not anticipate strong movements in the EUR/USD pair.

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

Buy Signal

Scenario #1: Today, buying the euro is possible upon reaching the 1.0415 price level (green line on the chart), with a target of rising to 1.0440. At 1.0440, I plan to exit the market and sell the euro in the opposite direction, aiming to move 30–35 pips from the entry-level. Significant euro growth during the first half of the day is unlikely. Important! Before buying, ensure that the MACD indicator is above the zero mark and beginning to rise.

Scenario #2: I also plan to buy the euro today if there are two consecutive tests of the 1.0405 level when the MACD indicator is in the oversold zone. This will limit the pair's downward potential and lead to an upward market reversal. Growth to the opposite levels of 1.0415 and 1.0440 can be expected.

Sell Signal

Scenario #1: I plan to sell the euro after reaching the 1.0405 level (red line on the chart). The target will be 1.0385, where I plan to exit the market and immediately buy in the opposite direction (aiming for a movement of 20–25 pips in the opposite direction from the level). Pressure on the pair could return at any time. Important! Before selling, ensure that the MACD indicator is below the zero mark and beginning to decline.

Scenario #2: I also plan to sell the euro today if there are two consecutive tests of the 1.0415 level when the MACD indicator is in the overbought zone. This will limit the pair's upward potential and lead to a market reversal downward. A decline to the opposite levels of 1.0405 and 1.0385 can be expected.

Chart Notes

• Thin green line: Entry price for buying the trading instrument.
• Thick green line: A suggested target for Take Profit or manually locking in profits, as further growth above this level is unlikely.
• Thin red line: Entry price for selling the trading instrument.
• Thick red line: A suggested target for Take Profit or manually locking in profits, as further decline below this level is unlikely.
• MACD Indicator: Critical for identifying overbought and oversold zones to guide market entry decisions.

Important Note for Beginner Traders

• Always approach market entry decisions cautiously.
• Avoid trading during major news releases to sidestep volatile price swings.
• If trading during news releases, always set stop-loss orders to minimize losses.
• Trading without stop-loss orders or money management practices can quickly deplete your deposit, especially when using large volumes.
• A clear trading plan, like the one outlined above, is essential for successful trading. Spontaneous trading decisions based on current market conditions are inherently disadvantageous for intraday traders.