Analysis of transactions in the EUR / USD pair
Euro soared last week, and most likely demand will continue to grow this week. Considering this, it is best to focus on a break above 1.1889, from which it will be possible to set off a new wave of growth in the market.
Trading recommendations for July 12
Pay attention to the statements of Fed member John Williams today, as those, along with the notes of the latest Fed minutes, could put pressure on dollar, which will result in an increase in EUR / USD.
The market expects more active actions from the Fed, more specifically on a reduction in the bond buying program. But it is clear that no one wants to rush this, so there is a high chance that euro will continue to grow against dollar.
For long positions:
Open a long position when euro reaches 1.1889 (green line on the chart), and then take profit around the level of 1.1937. But before buying, make sure that the MACD line is above zero, or is starting to rise from it.
For short positions:
Open a short position when euro reaches 1.1852 (red line on the chart), and then take profit at the level of 1.1796. A decline will occur if the Eurogroup announces unexpected decisions today. But before selling, make sure that the MACD line is below zero, or is starting to move down from it.
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 decisions based on the current market situation is an inherently losing strategy for an intraday trader.
