Overview of positions and trading tips on EUR
The euro climbed amid Germany's upbeat industrial production data and the positive eurozone GDP figure for the third quarter which was revised upwards. Speculators ignored the speeches of ECB policymakers Philip Lane and Fabio Panetta. Today, in the afternoon, ECB President Christine Lagarde will deliver a speech. The euro/dollar pair may decrease following her statements. Given the contraction in the manufacturing and service sectors, the central bank is unlikely to undertake an aggressive rate hike at the end of this year. The economic calendar is almost empty for the US save for weekly data on the number of initial jobless claims. So, the pair could move in the opposite direction from the trend formed in the European session.
Buy signal
Scenario No.1: today, we could buy the euro if the price reaches 1.0530 plotted by the green line on the chart with the target at 1.0580. I would recommend leaving the market at 1.0580 and then selling the euro in the opposite direction, bearing in mind a 30-35 pip downward move from the market entry point. The pair may resume an upward movement only if Christine Lagarde makes hawkish statements, Important! Before opening long positions, make sure that MACD is above the zero mark and it has just started to climb from it.
Scenario No.2: it is also possible to buy the euro today if the price approaches 1.0499. At this moment, the MACD indicator should be in the oversold area. It could limit the downward potential of the pair. It may also trigger an upward reversal of the market. The pair is expected to grow to the opposite levels of 1.0530 and 1.0580.
Sell signal
Scenario No.1: we could sell the euro if the price hits 1.0499 plotted by the red line on the chart. The 1.0453 level could serve as the target where I recommend leaving the market and buying the pound sterling in the opposite direction, bearing in mind a 20-25 pip upward move. The pressure on the pair could rerun if the tone of Christine Lagarde's speech is dovish. Important! Before opening short positions, make sure that MACD is below the zero line and it has just started to decline from it.
Scenario No.2: it is also possible to sell the euro today if the price touches 1.0530. At this moment, the MACD indicator should be in the overbought area, which will limit the upward potential of the pair. It could also lead to a downward reversal of the market. The pair is projected to slide down to the opposite levels of 1.0499 and 1.0453.
What's on the chart
The thin green line is the key level at which you can place long positions on the EUR/USD pair.
The thick green line is the target price as the pair is unlikely to move above this level.
The thin red line is the level at which you can place short positions on the EUR/USD pair.
The thick red line is the target price as the pair is unlikely to move below this level.
MACD line. When entering the market, it is important to adjust trading decisions to 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 losses due to sharp fluctuations in market quotes. If you decide to trade during the release of news, then always place Stop Loss orders to minimize losses. Without placing Stop Loss orders, you can very quickly lose your entire deposit, especially if you do not use money management and trade large volumes.
Remember that for successful trading, you need to have a clear trading plan. Spontaneous trading decisions based on the current market situation will inevitably lead to losses for an intraday trader.
