Analysis of transactions and tips for trading EUR/USD
The test of 1.0939, coinciding with the rise of the MACD line from zero, prompted a signal to buy EUR/USD. However, the pair did not show strong growth. Euro stayed afloat only because the reports from the ZEW about business sentiment and present situation in Germany, as well as business sentiment in the eurozone, exceeded expectations.
Today, important data on the eurozone's 2nd quarter GDP will come out, followed by a report on the volume of industrial production. They may negatively affect risk appetite, resulting in the drop of euro.
For long positions:
Buy when euro hits 1.0925 (green line on the chart) and take profit at the price of 1.0981. Growth will continue if the GDP data revises in a favorable direction. However, when buying, ensure that the MACD line lies above zero or just starts to rise from it.
Euro can also be bought after two consecutive price tests of 1.0899, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0925 and 1.0981.
For short positions:
Sell when euro reaches 1.0899 (red line on the chart) and take profit at the price of 1.0860. Pressure will increase in the event of inactivity around 1.0930. However, when selling, traders must ensure that the MACD line lies below zero or drops down from it.
Euro can also be sold after two consecutive price tests of 1.0925, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0899 and 1.0860.
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.
