Analysis of transactions and tips for trading EUR/USD
Euro tested 1.0641, but the MACD line was already far from zero, so the downside potential was limited. The fall was only about 15 pips.
January retail sales data of the eurozone was disappointing, so EUR/USD fell on Monday. However, risk appetite quickly returned, so the losses were offset.
Germany is set to release a report on manufacturing orders today, but it will be of little interest to the market. This is because the upcoming statements from the Federal Reserve are more important, especially since it could be a less aggressive tone. But if Chairman Jerome Powell insists on an aggressive stance, pressure will return to risky assets, which will lead to another drop in euro during the US session. That will end all bullish prospects in the pair.
For long positions:
Buy euro when the quote reaches 1.0694 (green line on the chart) and take profit at the price of 1.0725. Growth will occur after strong eurozone statistics and dovish rhetoric from the Fed. 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 1.0666, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0694 and 1.0725.
For short positions:
Sell euro when the quote reaches 1.0666 (red line on the chart) and take profit at the price of 1.0635. Pressure will return if the Federal Reserve says hawkish statements today. However, make sure that when selling, the MACD line is under zero or is starting to move down from it. Euro can also be sold at 1.0694, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0666 and 1.0635.
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.
