Analysis of Trades and Trading Advice for the Euro
Due to low volatility, the outlined price levels were not tested, preventing my trading strategies from being executed. However, it's worth noting that the expected U.S. jobless claims data in the second half of the day may trigger a spike in volatility, particularly if it signals positive labor market trends.
A notable decline in claims could indicate economic improvement and increased activity from employers. This may prompt traders to revise their strategies, expecting potential growth in economic activity. Conversely, an increase in claims could cause concern among market participants, highlighting potential economic issues such as layoffs in key industries or slower growth. This may negatively impact the currency market, weakening the dollar.
For intraday strategy, I will primarily rely on Scenario #2.
Buy Signal
Scenario #1:
Buy the euro at 1.0412 (green line on the chart) with the target at 1.0440. At 1.0440, I plan to exit the market and sell the euro in the opposite direction, aiming for a 30–35-point retracement from the entry point. Note: The euro's growth today can only be expected within the sideways channel.
Important: Ensure the MACD indicator is above the zero mark and just starting to rise before buying.
Scenario #2:
Buy the euro after two consecutive tests of 1.0392, provided the MACD indicator is in the oversold zone. This will limit the pair's downside potential and may lead to a reversal. Expected upward targets are 1.0412 and 1.0440.
Sell Signal
Scenario #1:
Sell the euro after reaching 1.0392 (red line on the chart), targeting 1.0361. Exit the market at 1.0361 and consider buying immediately in the opposite direction for a 20–25-point retracement.
Important: Ensure the MACD indicator is below the zero mark and just starting to decline before selling.
Scenario #2:
Sell the euro after two consecutive tests of 1.0412, provided the MACD indicator is in the overbought zone. This will limit the pair's upside potential and may lead to a reversal. Expected downward targets are 1.0392 and 1.0361.
Chart Key:
- Thin Green Line: Entry price for buying the trading instrument.
- Thick Green Line: Target price to place Take Profit or manually close positions, as further growth above this level is unlikely.
- Thin Red Line: Entry price for selling the trading instrument.
- Thick Red Line: Target price to place Take Profit or manually close positions, as further decline below this level is unlikely.
- MACD Indicator: Important to consider overbought and oversold zones when entering the market.
Important Tips for Beginner Forex Traders:
Be cautious when entering the market. Avoid trading during major fundamental report releases to prevent being caught in sharp price swings. Always set stop-loss orders to minimize losses. Without them, you could quickly lose your entire deposit, especially if trading large volumes.
Stick to a clear trading plan like the one outlined above for success. Making spontaneous decisions based on current market situations is an inherently losing strategy for intraday traders.
The material has been provided by InstaForex Company - www.instaforex.com
