Analysis of transactions and tips for trading EUR/USD
Euro tested 1.1049 when the MACD line was just starting to go below zero, which was a good reason to sell. This resulted in a price decrease of over 30 pips.
CPI data from France and Spain went unnoticed, as did the speech by ECB member Joachim Nagel. This is because market players were focusing on the report on retail sales, which contracted more than expected. However, by afternoon, the growth in industrial production and good numbers on consumer sentiment and inflation expectations from the University of Michigan helped dollar demand recover, so there was a decline in EUR/USD.
The economic calendar is empty today, so all attention will be focused on the speeches of ECB representatives. Chairman Christine Lagarde may confirm the still-hawkish position of the bank, which will help strengthen euro this morning. In the afternoon, the US will release the NY Empire State Manufacturing Index. However, it will be of little interest, so a correction may continue.
For long positions:
Buy euro when the level of 1.1006 (green line on the chart) is reached and then take profit at the price of 1.1042. Growth may occur after comments from European politicians. However, before buying, traders should make sure that the MACD line is above zero or is starting to rise from it. Euro can also be bought at 1.0980, but the MACD line should be in the oversold area as only by that will the market reverse to 1.1006 and 1.1042.
For short positions:
Sell euro when the level of 1.0980 (red line on the chart) is reached and then take profit at the price of 1.0951. Pressure may return in the afternoon. However, make sure that before selling, the MACD line is below zero or is starting to move down from it. Euro can also be sold at 1.1006, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0980 and 1.0951.
What's on the chart:
Thin green line - entry price at which you can buy EUR/USD
Thick green line - estimated price where you can set Take-Profit (TP) or manually fix profits, as further growth above this level is unlikely.
Thin red line - entry price at which you can sell EUR/USD
Thick red line - estimated price where you can set Take-Profit (TP) or manually fix profits, as further decline below this level is unlikely.
MACD line- it is important to be guided by overbought and oversold areas when entering the market
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.
