Analysis of transactions and tips for trading EUR/USD
Further decline became limited because the test of 1.0546, which occurred on Wednesday afternoon, coincided with the sharp drop of the MACD line from zero. Purchases on the rebound from 1.0513, on the other hand, showed a 10-pip correction. Pressure on the pair returned after the movement.
Weak data on Germany's leading consumer climate index indicated that nothing could be expected from the German economy in the fourth quarter of this year. Slower growth in lending in the eurozone also poses a negative sign. Today, there will be a report on Germany's consumer price index and the eurozone's consumer confidence indicator. Inflation growth or a less active reduction will be reasons to sell the euro, as will negative forecasts in the economic bulletin from the European Central Bank, which will be published closer to midday.
For long positions:
Buy when euro hits 1.0525 (green line on the chart) and take profit at the price of 1.0550. Growth may occur after very good data on inflation reduction in Germany and a positive forecast from the ECB. However, ooor data from the eurozone could dampen all buying enthusiasm.
Note that when buying, the MACD line should be above zero or rising from it. Euro can also be bought after two consecutive price tests of 1.0502, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0525 and 1.0550.
For short positions:
Sell when euro reaches 1.0502 (red line on the chart) and take profit at the price of 1.0474. Pressure may return at any moment, especially in such a bearish market.
Note that when selling, the MACD line should be below zero or dropping down from it. Euro can also be sold after two consecutive price tests of 1.0525, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0502 and 1.0474.
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.
