Euro hit a new monthly high, thanks to the better-than expected industrial production data from the eurozone and good inflation data from Germany. Given that US inflation is gradually easing, there is a chance that EUR/USD will continue to rise. However, traders still need to pay close attention to the upcoming labor market report from the US, as that could return demand for dollar. Of course, a decrease in producer prices, which will also be released today, will inevitably lead to another surge in the pair.
EUR/USD
For long positions:
Buy euro when the price hits 1.1025 (green line on the chart) and then take-profit when the quote reaches the level of 1.1066. However, before buying, make sure that the MACD line is above zero and is starting to rise from it.
Euro can also be bought at 1.0998, but the MACD line should be in the oversold area, as only by that will the market reverse to 1.1025 and 1.1066.
For short positions:
Sell euro when the price reaches 1.0998 (red line on the chart) and take profit at the level of 1.0965. However, before selling, make sure that the MACD line is below zero and is starting to drop down from it.
Euro can also be sold at 1.1025, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0998 and 1.0965.
