Analysis of transactions and tips for trading EUR/USD
The test of 1.0931 on Wednesday afternoon, coinciding with the rise of the MACD line from zero, prompted a buy signal that led to a price increase of over 30 pips.
Euro rose yesterday morning due to the statements made by ECB members Joachim Nagel and Isabel Schnabel. Then, it continued in the afternoon, as the Fed reiterated the earlier comments of Fed Chairman Jerome Powell.
Upcoming speeches of ECB members Fabio Panetta and Joachim Nagel will likely lead to further growth, as they may be about inflation and interest rates. A rise in consumer confidence in the Eurozone may also have a positive impact on buyers' positions.
For long positions:
Buy when euro hits 1.0995 (green line on the chart) and take profit at the price of 1.1037. An upward movement may continue, as buyers will return to the market. However, when buying, 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 1.0975, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0995 and 1.1037.
For short positions:
Sell when euro reaches 1.0975 (red line on the chart) and take profit at the price of 1.0945. Pressure may not return in the future. However, traders could still sell when the MACD line lies below zero or drops down from it. Euro can also be sold after two consecutive price tests of 1.0995, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0975 and 1.0945.
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.
