Analysis of transactions and tips for trading EUR/USD
The pair tested 1.0702 at a time when the MACD line was already far from zero, so the downside potential was limited. Long positions from 1.0671, on the other hand, provoked an increase of about 15 pips.
Although the lack of statistics after serious problems in the US banking sector provoked a surge in volatility, euro bulls managed to find the strength to continue the upward trend. However, today, there is a chance that euro will decline as demand for dollar could increase if the February report on US CPI shows an increase in the figures. That is likely to force the Fed to continue raising rates despite all the risks the economy is currently enduring. Upcoming data on industrial production in Italy, CPI in Spain and the Eurogroup meeting will have little interest to the market.
For long positions:
Buy euro when the quote reaches 1.0715 (green line on the chart) and take profit at the price of 1.0755. Growth is possible, but it will only be amid strong eurozone data and disappointing reports from the US. 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 1.0690, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0715 and 1.0755.
For short positions:
Sell euro when the quote reaches 1.0690 (red line on the chart) and take profit at the price of 1.0654. Pressure will return if the attempt to consolidate at the monthly highs fail. 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 1.0715, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0690 and 1.0654.
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.
