26.03.202410:05 Forex Analysis & Reviews: Analysis and trading tips for EUR/USD on March 26

Analysis of transactions and tips for trading EUR/USD

In the afternoon, the test of 1.0838 occurred during the rise of the MACD line from the zero mark, which limited the pair's potential for growth amid the downtrend. The second test after a short period of time came at the moment when the MACD was falling from the overbought zone, which led to the №2 scenario for short positions, but the pair did not actively fall. Yesterday, European Central Bank President Christine Lagarde's speech supported the euro. In the afternoon, the dollar still fell even if some Federal Reserve officials showed a hawkish stance. Today, the leading index of consumer climate in Germany and the change in the volume of GDP in Spain will be released in the morning. The GDP is a secondary report, so traders may focus on the German figures instead. A good report may support the euro.

For long positions:

Scenario #1: Today, you can buy the euro when the price hits 1.0848 (green line on the chart), in hopes that the pair will reach 1.0879. I plan to leave the market on this mark, as well as to sell the euro in the opposite direction, bearing in mind a movement of 30-35 pips from the entry point. The euro could rise as part of the corrective phase. When buying, make sure that the MACD line lies above zero or rises from it.

Scenario #2: The euro can also be bought after two consecutive price tests of 1.0833 when the MACD line is in the oversold area. This will limit the pair's bearish potential and will lead to a bullish reversal. We can expect growth to the opposite levels of 1.0848 and 1.0879.

For short positions:

Scenario #1: I plan to sell the euro after the price hits the level of 1.0833 (red line on the chart). The target will be the level of 1.0803, which is where I am going to leave the market and buy in the opposite direction (bearing in mind a movement of 20-25 pips in the opposite direction from the level). The pressure on the pair will increase in case the buyers are not active near the daily high. When selling, make sure that the MACD line lies under the zero mark or drops down from it.

Scenario #2: The euro can also be sold after two consecutive price tests of 1.0848, but the MACD line should be in the overbought area. This will limit the pair's bullish potential and will lead to a bearish reversal. The pair can fall to the opposite level of 1.0833 and 1.0803.

What's on the chart:

Thin green line - entry price at which you can buy EUR/USD

Thick green line - estimated price where you can set Take-Profit (TP) or manually fix profits, as further growth above this level is unlikely.

Thin red line - entry price at which you can sell EUR/USD

Thick red line - estimated price where you can set Take-Profit (TP) or manually fix profits, as further decline below this level is unlikely.

MACD line- it is important to be guided by overbought and oversold areas when entering the market

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.