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FX.co ★ Analysis and trading tips for EUR/USD on August 23 (US session)

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Forex Analysis:::2023-08-23T10:53:37

Analysis and trading tips for EUR/USD on August 23 (US session)

Analysis of transactions and trading tips on EUR/USD

The test of 1.0866 in the morning coincided with the rise of the MACD line from zero, prompting a signal to buy. However, it led to losses, as the disappointing data on the eurozone made the pair drop very rapidly.

Selling at the price of 1.0852 could not be done since the pair fell instantaneously.

Analysis and trading tips for EUR/USD on August 23 (US session)

Sellers gained the upper hand this morning because of the weak PMI indices in the eurozone, which indicated that the problems in the manufacturing sector spread to the service sector. In the afternoon, similar reports will come from the US, where an increase in the indices will lead to another significant drop in EUR/USD. Dollar demand will maintain if data on new home sales falls short of expectations.

For long positions:

Buy when euro hits 1.0842 (green line on the chart) and take profit at the price of 1.0888. Growth will occur amid very weak PMI data from the US. However, when buying, ensure that the MACD line lies above zero or rises from it.

Euro can also be bought after two consecutive price tests of 1.0806, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0842 and 1.0888.

For short positions:

Sell when euro reaches 1.0806 (red line on the chart) and take profit at the price of 1.0774. Pressure will continue after US reports. However, when selling, 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 1.0842, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0806 and 1.0774.

Analysis and trading tips for EUR/USD on August 23 (US session)

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.

Analyst InstaForex
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