Analysis of transactions and trading tips on EUR/USD
The first test of 1.0457 occurred when the MACD line moved downward from zero, prompting a sell signal. However, no price decrease happened in the pair. As for the second test, it took place when the MACD line went into oversold area, which, together with reasonably good PMI data on the eurozone, prompted a buy signal. This resulted in a 40-pip increase in the pair.
The report for the eurozone data did not disappoint, so buyers managed to establish an upward correction. But whether it will continue in the afternoon remains unclear, as ahead lies the business activity data from the ISM, followed by the composite PMI and ADP employment report. Better-than-expected numbers will increase dollar demand, leading to a decline in EUR/USD. But if the data disappoints, and FOMC member Michelle Bowman suggests that interest rates could remain unchanged in the foreseeable future, euro will surge, continuing the upward correction.
For long positions:
Buy when euro hits 1.0525 (green line on the chart) and take profit at the price of 1.0558. Growth will occur, especially amis a dovish stance of Fed representatives. 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 1.0495, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0525 and 1.0558.
For short positions:
Sell when euro reaches 1.0495 (red line on the chart) and take profit at the price of 1.0459. Pressure may return in the case of unsuccessful consolidation near the daily high. 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 1.0525, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0495 and 1.0459.
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.
