Analysis of transactions and tips for trading EUR/USD
The test of 1.0680 took place when the MACD line moved above zero, prompting a signal to buy. This resulted in a price increase of around 35 pips.
Weak CPI data from Germany and retail sales report in the eurozone led to a decline in euro yesterday morning. However, Fed Chairman Jerome Powell's speech offset the losses. Today, apart from the release of the ECB's economic bulletin, nothing important will come out, so market players will likely focus on the statements of ECB President Christine Lagarde, who recently took a firm position on future interest rates. In theory, this could help euro continue its rally.
For long positions:
Buy when euro hits 1.0717 (green line on the chart) and take profit at the price of 1.0751. Growth will occur in continuation of the upward trend, but only after consolidating above 1.0717.
When buying, make sure that the MACD line lies above zero or rises from it. Euro can also be bought after two consecutive price tests of 1.0689, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0717 and 1.0751.
For short positions:
Sell when euro reaches 1.0689 (red line on the chart) and take profit at the price of 1.0654. Pressure will increase after an unsuccessful attempt to consolidate at the daily high, as well as after a soft position of the ECB regarding future rates.
When selling, make sure that the MACD line lies under zero or drops down from it. Euro can also be sold after two consecutive price tests of 1.0717, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0689 and 1.0654.
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.
