Analysis of transactions and tips for trading EUR/USD
Further growth became limited because the test of 1.0525 coincided with the sharp rise of the MACD line from zero.
Better-than-expected data on the eurozone's service PMI, PPI, and retail sales led to the rise of euro in the morning. Then, the upward movement continued in the afternoon as weak ADP employment report in the US put pressure on dollar during the US session. The empty macroeconomic calendar today, as well as the speech of ECB board member Joachim Nagel, will unlikely have any impact on the market.
For long positions:
Buy when euro hits 1.0527 (green line on the chart) and take profit at the price of 1.0558. Growth will occur if ECB representatives take a softer stance on monetary policy.
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 1.0495, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0527 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 at any moment, especially in the case of weak eurozone data and firm comments from ECB representatives.
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 1.0527, 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.
