27.03.202410:00 Forex Analysis & Reviews: Analysis and trading tips for EUR/USD on March 27

Analysis of transactions and tips on trading the euro

The test of 1.0852 in the afternoon came at a time when the MACD indicator was just starting to fall from the zero mark, which confirmed the sell signal, and the pair fell to the area of 1.0831. As a result, the drop was 20 pips. Germany's consumer confidence data and Spain's GDP report supported the euro, but strong US reports, especially regarding consumer confidence, exerted pressure on the pair. Today, the euro may continue to fall, and statements from European Central Bank Executive Board member Piero Cipollone and ECB Executive Board member Frank Elderson will help. A dovish stance will put pressure on the euro. A decline in the Eurozone consumer confidence indicator may also weigh on the single currency.

For long positions

Today, you can buy euros when the price reaches the area around 1.0841 (green line on the chart) in order to rise to the level of 1.0864. I recommend leaving the market at 1.0864, as well as selling euros in the opposite direction, counting on a movement of 20-25 points in the opposite direction from the entry point. Today, the euro may possibly rise if the ECB officials show a hawkish stance. When buying, make sure that the MACD line lies above zero or rises from it.

The euro can also be bought after two consecutive price tests of 1.0822, but the MACD line should be in the oversold area, which will limit the pair's bearish potential and lead to a bullish reversal. We can expect growth to the opposite levels of 1.0841 and 1.0864.

For short positions

You can sell the euro after reaching the level of 1.0822 (the red line on the chart). The target will be the 1.0804 level, where I recommend leaving the market and buying euros immediately in the opposite direction (counting on a movement of 20-25 points in the opposite direction from the level). The euro will remain under pressure within the downtrend. When selling, make sure that the MACD line lies below the zero mark or drops down from it.

It is also possible to sell the euro today after two consecutive price tests of 1.0841, but the MACD line should be in the overbought area, as it will limit the pair's bullish potential and lead to a market reversal to 1.0822 and 1.0804.

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.