Analysis of transactions and tips for trading EUR/USD
The test of 1.0598 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 35 pips. No other signals appeared for the rest of the day.
CPI and GDP data from France prompted a rise in EUR/USD on Tuesday morning. However, dismal US consumer confidence data returned demand for dollar has returned, indicating the presence of big players in the market looking to strengthen safe haven assets in the face of interest rate hikes by central banks.
A number of reports from Germany are expected today, all of which may both strengthen the euro and weaken it. February PMI for manufacturing in the eurozone will also lead to a spike in volatility, but it will be difficult to determine the pair's further direction in these conditions. The US ISM manufacturing index report comes out in the afternoon and is likely to remain below 50 points. However, given how the pair reacted to the negative statistics yesterday, it is also difficult to know what the reaction to the ISM data will be. FOMC member Neel Kashkari's speech will probably not be much different from his colleagues' statements.
For long positions:
Buy euro when the quote reaches 1.0614 (green line on the chart) and take profit at the price of 1.0640. Growth could occur, but it will only be an upward correction after strong eurozone data. 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 1.0590, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0614 and 1.0640.
For short positions:
Sell euro when the quote reaches 1.0590 (red line on the chart) and take profit at the price of 1.0555. Pressure will return if there is no support at the daily highs. 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 1.0614, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0590 and 1.0555.
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.
