Analysis of transactions and tips for trading EUR/USD
The test of 1.0613, coinciding with the downward movement of the MACD line from zero, prompted a sell signal that led to a price decrease of over 60 pips.
The ECB's minutes of the meeting did not affect the pair's movement, as the contents did not contain anything new. On the other hand, the released US inflation data led to a decline in EUR/USD because the September figure exceeded expectations. Such statistics will likely compel the Fed for further actions.
Today, CPI data in France and Spain will come out, followed by a report on the changes in industrial production of the eurozone. ECB President Christine Lagarde will also speak, which may contribute to euro's rise in the morning.
For long positions:
Buy when euro hits 1.0564 (green line on the chart) and take profit at the price of 1.0593. Growth will occur as an attempt to compensate for yesterday's losses. However, when buying, the MACD line should be above zero or rising from it.
Euro can also be bought after two consecutive price tests of 1.0539, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0564 and 1.0593.
For short positions:
Sell when euro reaches 1.0539 (red line on the chart) and take profit at the price of 1.0510. Pressure will return at any moment, especially in the case of weak economic data from the eurozone and statements by Lagarde about the fight against inflation. However, 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 1.0564, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0539 and 1.0510.
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.
