Analysis of transactions and tips for trading EUR/USD
Following the strong ADP employment report in the US, the test of 1.0865 on Thursday afternoon, coinciding with the rise of the MACD line from zero, prompted a sell signal that led to a price decrease of around 30 pips.
Euro rallied on Thursday, thanks to the data on industrial orders in Germany, retail trade in the eurozone, and speech of ECB Board member Joachim Nagel. However, strong US labor market figures put pressure back on the pair.
France's foreign trade balance and Italy's retail sales report lie ahead, but they will not affect the market much, as traders put more focus on the speeches of ECB members Christine Lagarde, Luis de Guindos, and Joachim Nagel.
For long positions:
Buy when euro hits 1.0905 (green line on the chart) and take profit at the price of 1.0948. Only hawkish comments from ECB representatives will trigger growth in the pair.
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 1.0882, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0905 and 1.0948.
For short positions:
Sell when euro reaches 1.0882 (red line on the chart) and take profit at the price of 1.0837. Pressure will increase after weak reports on the eurozone.
When selling, 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 1.0905, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0882 and 1.0837.
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.
