Analysis of transactions and trading tips on EUR/USD
The test of 1.0896 coincided with the downward move of the MACD line from zero, prompting a sell signal. However, a large price decrease did not occur.
The empty macroeconomic calendar influenced the market direction, but buyers also demonstrated resilience. As for the further movement, jobless claims data in the US lie ahead, followed by a report on the University of Michigan's consumer sentiment index and inflation expectations. Strong indicators will likely push euro towards the daily high, providing an opportunity for a larger decline. Weak reports, meanwhile, will keep trading within the current channel, allowing buyers to count on a new cycle of growth.
For long positions:
Buy when euro hits 1.0921 (green line on the chart) and take profit at the price of 1.0964. Strong growth will occur amid a weak US labor market data.
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 1.0892, but the MACD line should be in the oversold area, as only by that will the market reverse to 1.0921 and 1.0964.
For short positions:
Sell when euro reaches 1.0892 (red line on the chart) and take profit at the price of 1.0855. Pressure will increase in the case of strong US statistics and inflation expectations.
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 1.0921, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0892 and 1.0855.
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.
