21.03.202409:05 Forex Analysis & Reviews: Analysis and trading tips for EUR/USD on March 21

Analysis of transactions and tips for trading EUR/USD

Further growth became limited because the test of 1.0857 occurred during the sharp rise of the MACD line from zero. Then, a good market movement arose after the Fed's decision, bringing around 50 pips of profit.

The Fed said they would stick to their path of reducing interest rates even though they encountered obstacles on the way to low and stable inflation. This led to a decline in dollar and purchases of euro. The upward trend in EUR/USD will continue today as long as Manufacturing PMI, Service PMI, and Composite PMI data for the eurozone exceed expectations.

For long positions:

Buy when euro hits 1.0946 (green line on the chart) and take profit at the price of 1.1003. Growth will occur after very good statistics from Germany and the eurozone, especially in the manufacturing sector.

When buying, make sure that the MACD line lies above zero or rises from it. Euro can also be bought after two consecutive price tests of 1.0921, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0946 and 1.1003.

For short positions:

Sell when euro reaches 1.0921 (red line on the chart) and take profit at the price of 1.0875. Pressure will increase in the case of unsuccessful bullish activity around the daily high and weak data.

When selling, make sure that the MACD line lies under zero or drops down from it. Euro can also be sold after two consecutive price tests of 1.0946, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0921 and 1.0875.

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.