Trade Review and Tips for Trading the Euro

The test of the 1.1735 price level occurred when the MACD indicator had just begun moving upward from the zero mark, confirming a good entry point for buying the euro. As a result, the pair rose by 10 points.

In the second half of the day, important data on the U.S. ISM Manufacturing Index is expected. Market participants will focus on the index value itself as well as the deviation from economists' forecasts. If the indicator exceeds expectations or shows steady positive dynamics, it will be interpreted as a favorable sign. Strong manufacturing activity traditionally signals stableeconomic growth, which in turn will increase the attractiveness of the U.S. dollar against the euro, potentially halting the current upward trend.

As for the intraday strategy, I will rely more on implementing Scenarios No. 1 and No. 2.

Buy Signal

Scenario No. 1: Today, buying the euro is possible upon reaching the price level of 1.1750 (green line on the chart), with a target of 1.1786. At 1.1786, I plan to exit the market and also consider selling in the opposite direction, expecting a 30–35 point move from the entry point. A rise in the euro today can be expected only after weak U.S. data.Important! Before buying, make sure the MACD indicator is above the zero mark and just beginning to rise from it.

Scenario No. 2: I also plan to buy the euro today if there are two consecutive tests of the 1.1730 price level while the MACD indicator is in the oversold area. This will limit the pair's downward potential and lead to a reversal upward. Growth toward the opposite levels of 1.1750 and 1.1786 can be expected.

Sell Signal

Scenario No. 1: I plan to sell the euro after reaching the level of 1.1730 (red line on the chart). The target will be 1.1689, where I intend to exit the market and immediately buy in the opposite direction (expecting a 20–25 point move). Pressure on the pair will return today if U.S. data is strong.Important! Before selling, make sure the MACD indicator is below the zero mark and just beginning to decline from it.

Scenario No. 2: I also plan to sell the euro today if there are two consecutive tests of the 1.1750 level while the MACD indicator is in the overbought area. This will limit the pair's upward potential and lead to a reversal downward. A decline toward the opposite levels of 1.1730 and 1.1689 can be expected.

Chart Explanation

• Thin green line – entry price for buying the trading instrument;
• Thick green line – estimated level for placing Take Profit or locking in profits, as further growth above this level is unlikely;
• Thin red line – entry price for selling the trading instrument;
• Thick red line – estimated level for placing Take Profit or locking in profits, as further decline below this level is unlikely;
• MACD indicator – when entering the market, it is important to consider overbought and oversold zones.

Important: Beginner Forex traders should be very cautious when making market entry decisions. Before the release of major fundamental reports, it is best to stay out of the market to avoid sharp price fluctuations. If you choose to trade during news releases, always set stop-loss orders to minimize losses. Without stop-loss orders, you can quickly lose your entire deposit, especially if you do not use proper money management and trade large volumes.

Remember, successful trading requires a clear trading plan like the one outlined above. Making spontaneous trading decisions based on current market conditions is generally a losing strategy for intraday traders.