Analysis of Trades and Trading Tips for the Euro Currency

The price test at 1.1551 coincided with the MACD indicator just beginning to move down from the zero mark, confirming the correct entry point for selling the euro. As a result, the pair declined by 25 pips.

Today, market participants will focus on the Spanish consumer price index report. Although this report is not a significant indicator for the entire Eurozone, it can help shape the direction for future statements from European Central Bank representatives, who have attempted to adopt a more hawkish stance regarding interest rates this week.

Additionally, the Eurogroup meeting will take place today. The main agenda item will likely revolve around two key aspects: the escalation of tensions in the Middle East caused by US actions and, as a logical consequence, changes in energy prices. The discussion among the finance ministers of Eurozone countries, aimed at developing a coordinated position to assess existing risks and possibly propose measures to mitigate their negative impact, could affect the currency markets and the euro.

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

Buying Scenarios:

Scenario #1: I plan to buy euros today when the price reaches around 1.1542 (green line on the chart), targeting a move to 1.1565. I intend to exit the market at 1.1565 and sell back in the opposite direction, aiming for a 30-35-pip move from the entry point. One can only expect the euro to rise after very good data. Important! Before buying, ensure the MACD indicator is above the zero mark and just starting an upward move from it.

Scenario #2: I also plan to buy euros today if the price tests 1.1533 twice in a row while the MACD indicator is in the oversold area. This will limit the downside potential of the pair and lead to a market reversal upwards. One can expect growth towards the opposite levels of 1.1549 and 1.1565.

Selling Scenarios:

Scenario #1: I plan to sell euros once the level of 1.1533 (red line on the chart) is reached. The target will be 1.1515, where I intend to exit my short positions and immediately buy back in the opposite direction (aiming for a move of 20-25 pips in the opposite direction from the level). Pressure on the pair could return at any moment today. Important! Before selling, ensure the MACD indicator is below the zero mark and just starting its downward move.

Scenario #2: I also plan to sell euros today if the price tests 1.1549 twice in a row while the MACD indicator is in the overbought area. This will limit the upside potential of the pair and lead to a market reversal downwards. One can expect a decline towards the opposite levels of 1.1533 and 1.1515.

What's on the Chart:

• The thin green line represents the entry price at which you can buy the trading instrument;
• The thick green line is the assumed price where you can set Take Profit or manually take profit, as further growth above this level is unlikely;
• The thin red line indicates the entry price at which you can sell the trading instrument;
• The thick red line is the assumed price where you can set Take Profit or manually take profit, as further decline below this level is unlikely;
• The MACD indicator. When entering the market, it's important to refer to the overbought and oversold zones.

Important: Beginner traders in the forex market need to make entry decisions very carefully. It is best to stay out of the market before the release of important fundamental reports to avoid sharp fluctuations in prices. If you choose to trade during the release of news, always set Stop Loss orders to minimize losses. Without placing Stop Loss orders, you can quickly lose your entire deposit, especially if you do not use money management and trade large volumes.

And remember, successful trading requires a clear trading plan, like the one presented above. Making spontaneous trading decisions based on the current market situation is inherently a losing strategy for intraday traders.