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FX.co ★ Analysis and trading tips for EUR/USD on March 2

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Forex Analysis:::2023-03-02T07:03:43

Analysis and trading tips for EUR/USD on March 2

Analysis of transactions and tips for trading EUR/USD

The test of 1.0614 occurred when the MACD line was already far from zero, so the upside potential was limited. Sometime later, there were sales at 1.0640, but there was not much success as the pair moved by only 10 pips. Demand returned immediately after the short decline. No other signals appeared for the rest of the day.

Analysis and trading tips for EUR/USD on March 2

Although manufacturing PMI in the Euro area was not as impressive as expected, EUR/USD rose because Germany's inflation data beat forecasts. Weak ISM data in the US also did not help dollar recover even though markets already expected such figures.

Today, a number of reports are expected, particularly on the labor market and inflation. If eurozone inflation comes in above expectations, the pair will climb to new weekly highs. The ECB's monetary policy meeting report and speech by board member Isabelle Schnabel will not be of interest.

In the afternoon, the US will release data on jobless claims, followed by a change in the labor force productivity. However, both are unlikely to have much impact on the market. If euro bulls fail to hit weekly highs in the morning, the pair may see a strong decline during the US session.

For long positions:

Buy euro when the quote reaches 1.0660 (green line on the chart) and take profit at the price of 1.0685. Growth will occur if reports show that inflation in the Euro area rose in February. However, make sure that when buying, the MACD line is above zero or is starting to rise from it. Euro can also be bought at 1.0635, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0660 and 1.0685.

For short positions:

Sell euro when the quote reaches 1.0635 (red line on the chart) and take profit at the price of 1.0608. Pressure will return if inflationary pressure in the region decreases. 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 1.0660, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0635 and 1.0608.

Analysis and trading tips for EUR/USD on March 2

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.

Analyst InstaForex
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