Analysis of transactions and tips for trading EUR/USD
Further growth became limited because the test of 1.0921 occurred when the MACD line moved upward quite sharply from zero. In the afternoon, another test took place, but this time it coincided with the rise of the MACD line from zero, sparking a signal to buy. This led to a price increase of over 30 pips.
Strong data from the IFO regarding Germany's business climate, present situation, and economic expectations, together with the hawkish statements from ECB members Christine Lagarde and Joachim Nagel, kept the euro climbing in price yesterday morning. Then, weak statistics from the US led to further strengthening in the pair. Today, apart from the speech of ECB President Christine Lagarde, nothing could affect euro, so buyers will have every chance of continuing the upward trend.
For long positions:
Buy when euro hits 1.0964 (green line on the chart) and take profit at the price of 1.1004. Growth will occur in continuation of the bullish scenario, right after the breakdown of the monthly highs caused by hawkish comments from ECB representatives.
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 1.0936, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0964 and 1.1004.
For short positions:
Sell when euro reaches 1.0936 (red line on the chart) and take profit at the price of 1.0900. Pressure will increase in the case of an unsuccessful attempt to consolidate at the monthly high.
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 1.0964, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0936 and 1.0900.
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.
