Analysis of transactions and tips for trading EUR/USD
Further decline became limited because the first test of 1.0470 coincided with the sharp drop of the MACD line from zero. As for the second test, it happened when the MACD line went in oversold area, prompting a buy signal. This resulted in a price increase of around 15 pips. Pressure on euro returned after the movement.
The empty macroeconomic calendar, together with the speech of ECB Board member Philip Lane, prevented an upward correction. However, the situation may change in favor of buyers today as long as the reports on the eurozone's service sector, PPI, and retail trade volume exceed expectations. The speech of ECB President Christine Lagarde may also have a positive impact if she takes a more accommodative stance on interest rates.
For long positions:
Buy when euro hits 1.0492 (green line on the chart) and take profit at the price of 1.0540. Growth will occur after good reports on activity in the eurozone.
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 1.0457, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0492 and 1.0540.
For short positions:
Sell when euro reaches 1.0457 (red line on the chart) and take profit at the price of 1.0417. Pressure may return at any moment, especially in the case of weak eurozone data and firm comments from Lagarde.
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 1.0492, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0457 and 1.0417.
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.
