Analysis of transactions in the EUR / USD pair
Although pressure continued in EUR / USD on Thursday, it was difficult for bearish traders to open short positions because the MACD line was far from zero. It limited the downside potential of the pair, which is why the quote rose slightly after a brief decline in the market. No other signals appeared for the rest of the day.
Talking about macro statistics, traders were disappointed yesterday by the unemployment report from Germany and sharp inflationary leaps in France, Italy and Germany.
Speeches from Fed representatives were also of great importance as everyone was waiting for a decision on the US national debt limit. As a response, President Joe Biden signed an emergency plan for the government until December 3 of this year.
Today, it is important to note data on retail trade in Germany, as well as manufacturing PMI and CPI in the Euro area. Then, in the afternoon, there will be a report on US consumer sentiment, which, if exceeded expectations, will lead to a rise in dollar and accordingly, a further drop in EUR / USD.
For long positions:
Open a long position when euro reaches 1.1589 (green line on the chart) and take profit at the level of 1.1620. The pair will climb higher if data from the Euro area exceed expectations.
But before buying, make sure that the MACD line is above zero, or is starting to rise from it.
It is also possible to buy at 1.1562, but the MACD line should be in the oversold area, as only by that will the market reverse to 1.1589 and 1.1620.
For short positions:
Open a short position when euro reaches 1.1562 (red line on the chart) and take profit at the level of 1.1537. Pressure will continue in the event of weak data from the Euro area and strong statistics from the US. Negotiations on President Biden's trillion dollar plan will also take place today.
But before selling, make sure that the MACD line is below zero, or is starting to move down from it.
Euro could also be sold at 1.1589, but the MACD line should be in the overbought area, as only by that will the market reverse to 1.1562 and 1.1532.
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.
