Analysis of transactions in the EUR / USD pair

When EUR/USD tested 1.0310, the MACD line had already gone up quite far from zero, limiting the upside potential of the pair. Similarly, the downside potential was also limited during the test of 1.0364. No other signals appeared for the rest of the day.

The index on producer prices for July this year surprisingly showed a sharp decline, which led to a rise in euro, albeit not above the monthly high.

Ahead is the release of report on the volume of industrial production in the eurozone, but the number is unlikely to lead to significant market changes. It will, however, indicate the state of the manufacturing sector. In the afternoon, the US will publish data on consumer expectations and consumer sentiment from the University of Michigan, but it is unlikely to help dollar much. Export price index and import price index reports will also be of little interest.

For long positions:

Buy euro when the quote reaches 1.0329 (green line on the chart) and take profit at the price of 1.0364. However, there is little chance for a rally today, especially considering the recently-released weak reports on the EU economy.

Take note that when buying, the MACD line should be above zero or is starting to rise from it. Euro can also be bought at 1.0307, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0329 and 1.0364.

For short positions:

Sell euro when the quote reaches 1.0307 (red line on the chart) and take profit at the price of 1.0275. Pressure will return if the attempt to reach the monthly highs fails.

Take note that when selling, the MACD line should be below zero or is starting to move down from it. Euro can also be sold at 1.0329, but the MACD line should be in the overbought area, as only by that will the market reverse to 1.0307 and 1.0275.

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