Analysis of transactions and tips for trading EUR/USD
The test of 1.0895 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 45 pips. Selling on a rebound from 1.0940, meanwhile, resulted in a 20-pip decline.
Euro rose after the release of the eurozone's consumer confidence report and Germany's consumer price index, but a stronger surge occurred amid the ADP data on the US labor market, which disappointed as it turned out rather worse than forecasts.
A lot of statistics that can influence the market will also come out today, such as the changes in Germany's retail trade volume, unemployment rate, and the number of unemployed. All this will be secondary compared to the consumer price index of the eurozone, the growth of which will lead to a new surge in euro upwards. The ECB report on the monetary policy meeting will also be under the close scrutiny of market players, although it will be inflation that will help determine the ECB's future decision on interest rates. Rate hikes will mean that euro will rise.
For long positions:
Buy when euro hits 1.0926 (green line on the chart) and take profit at the price of 1.0959. Growth may occur today as a continuation of a new trend, especially if price pressure persists. 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 1.0926 and 1.0959.
For short positions:
Sell when euro reaches 1.0899 (red line on the chart) and take profit at the price of 1.0866. Pressure will increase in the event of a decrease in inflation 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 1.0926, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0899 and 1.0866.
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.
