Analysis of transactions and tips for trading EUR/USD
At first, further decline became limited as the test of 1.0882 coincided with the strong drop of the MACD line from zero. However, in the afternoon, the pair continued to decline even though the second price test of 1.0882 prompted a signal to buy due to the MACD line going to the oversold area.
Hawkish statements by Fed representatives fueled fears of the continuation of aggressive monetary policy by the central bank. This led to a decline in EUR/USD.
A lot of important data lies ahead. A decline in business activity in the service and manufacturing sectors of the eurozone may lead to a deterioration in the overall composite PMI index, adding more pressure on euro. But if the data turns out to be better than expected, euro will have a chance to recover.
For long positions:
Buy when euro hits 1.0866 (green line on the chart) and take profit at the price of 1.0888. Growth will occur after very good PMI data from the eurozone. 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 1.0852, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0866 and 1.0888.
For short positions:
Sell when euro reaches 1.0852 (red line on the chart) and take profit at the price of 1.0825. Pressure will increase in the event of poor macroeconomic indicators in the eurozone. 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 1.0866, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0852 and 1.0825.
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.
