Analysis of transactions and tips for trading EUR/USD
Euro tested 1.0945 when the MACD line had just started to climb above zero, which was a good reason to buy As a result, the quote rose by about 35 pips. Meanwhile, sales on the rebound from 1.0974 brought around 20 pips of profit.
CPI in the Euro area was the same as expected. However, core inflation rose despite a decline in the overall indicator, indicating that problems persist for the European Central Bank. That is why euro rose, as interest rates may continue to increase.
Ahead are key reports on the eurozone, namely the producer price index from Germany and the minutes of the meeting from the ECB. Hawkish tone and hints of further rate hikes will fuel demand for euro, but this may be offset by strong data on US jobless claims and volume of home sales in the secondary market. The Philadelphia Fed manufacturing index and speeches by FOMC members Christopher Waller and Michelle Bowman may also help dollar compensate for losses as recently, policymakers continue to insist on raising rates.
For long positions:
Buy euro when the level of 1.0980 (green line on the chart) is reached and then take profit at the price of 1.1020. Growth will be seen if the ECB retains its hawkish stance on monetary policy. 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 1.0950, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0980 and 1.1020.
For short positions:
Sell euro when the level of 1.0950 (red line on the chart) is reached and then take profit at the price of 1.0906. Pressure may return if there is no bullish activity at the weekly highs. 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 1.0980, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0950 and 1.0906.
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.
