Analysis of transactions in the EUR / USD pair
Market signals on Thursday said to sell EUR / USD, however, the MACD line was far from zero so the decrease was very limited. It was followed by a signal to buy, but it led to losses even though the indicator was in the oversold area. Closer to mid-day a sell signal appeared, and this time it provoked a 30-pip decline in the pair. After that was a signal to buy that set off a 25-pip increase.
EUR / USD fell yesterday because economic reports from the US increased demand for dollar. Strong data on orders for durable goods and jobless claims helped it return to the 13th figure, but did not manage to break below. US consumer sentiment also drove USD up.
There is no data on the eurozone today, and many markets are completely closed due to Christmas Eve. Volatility and activity of traders promises to be minimal, so the best solution is not to trade. If you want to test the strength of the market, then do it with a small volume because movements can be unpredictable.
For long positions:
Buy euro when the quote reaches 1.1339 (green line on the chart) and take profit at the price of 1.1376. Growth will only be litte today because trading volume is likely to be low.
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 1.1322, but the MACD line should be in the oversold area, as only by that will the market reverse to 1.1339 and 1.1376.
For short positions:
Sell euro when the quote reaches 1.1322 (red line on the chart) and take profit at the price of 1.1293.
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 1.1339, however, the MACD line should be in the overbought area, as only by that will the market reverse to 1.1322 and 1.1293.
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.
