Analysis of transactions and tips for trading EUR/USD
The test of 1.0551 occurred when the MACD line was just starting to move up from zero, which was a signal to buy. It resulted in a price increase of over 40 pips. Meanwhile, selling on a rebound from 1.0592 did not result in a strong downward correction, so there were losses. No other signals appeared for the rest of the day.
The reports on consumer confidence, private sector lending and M3 money supply in the Euro area were ignored by markets on Monday, which is why an upward correction is brewing in euro. The speech of ECB's board member Philip Lane was also ignored, as did the data on pending home sales in the US, where there was a fairly significant increase in the indicator.
Today, in the morning, there are important reports from France, which are the consumer price index and GDP volume change. The two are unlikely to have an impact on EUR/USD, so a continuation of the upward correction may be expected. In the afternoon, the US consumer confidence indicator should come out better than the forecasts, which will be a trigger for buying dollar in the short-term. The trade balance and Chicago PMI are likely to be ignored, as will the speech of FOMC member Austan Goolsbee.
For long positions:
Buy euro when the quote reaches 1.0598 (green line on the chart) and take profit at the price of 1.0627. Growth could occur, but it will only be an upward correction at the beginning of this week. Nevertheless, make sure that when buying, the MACD line is above zero or is starting to rise from it. Euro can also be bought at 1.0570, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0598 and 1.0627.
For short positions:
Sell euro when the quote reaches 1.0570 (red line on the chart) and take profit at the price of 1.0537. Pressure will return if statistics in the Euro are come out weaker than expected. However, make sure that when selling, the MACD line is below zero or is starting to move down from it. Euro can also be sold at 1.0598, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0570 and 1.0537.
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 decision based on the current market situation is an inherently losing strategy for an intraday trader.
