Analysis of transactions and tips for trading EUR/USD
No market signals appeared in EUR/USD as the pair failed to reach its target levels due to low volatility and the public holiday in the US.
There could be intense movements in the pair today as lending data from the Eurozone, which holds significant importance for the European Central Bank, will be released. Any deterioration will result in new sell-offs. The report on consumer confidence for May will also hold considerable significance as fairly positive figures could lead to growth in the pair.
For long positions:
Buy when euro hits 1.0709 (green line on the chart) and take profit at the price of 1.0757. Growth could occur amid positive lending statistics in the Eurozone. However, traders should make sure that the MACD line lies above zero or rises from it. Euro can also be bought after two consecutive price tests of 1.0674, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0709 and 1.0757.
For short positions:
Sell when euro reaches 1.0674 (red line on the chart) and take profit at the price of 1.0640. Pressure may persist in a bearish market environment. However, traders should make sure that the MACD line lies below zero or drops down from it. Euro can also be sold after two consecutive price tests of 1.0709, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0674 and 1.0641.
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.
