Analysis of transactions and trading tips on EUR/USD
Further growth became limited because the test of 1.0936 occurred at a time when the MACD line moved upward quite sharply from zero. Sometime later, another test took place, and this time it provoked a sell signal as the MACD line went within the overbought area. This should have led to a price decline, but none occurred, resulting in losses.
Euro rose in price as the latest inflation data in the eurozone confirmed the European Central Bank's firm stance on interest rates. However, pressure may return in the afternoon if the upcoming reports on the US real estate market show growth. In particular, strong data on the volume of issued building permits and the number of new housing construction starts will pull up dollar demand. Weak statistics will support euro and continue the upward trend.
For long positions:
Buy when euro hits 1.0956 (green line on the chart) and take profit at the price of 1.0995. Growth will occur after very weak data from the US.
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 1.0936, but the MACD line should be in the oversold area, as only by that will the market reverse to 1.0956 and 1.0995.
For short positions:
Sell when euro reaches 1.0936 (red line on the chart) and take profit at the price of 1.0896. Pressure will increase in the case of very strong data from the US.
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 1.0956, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0936 and 1.0896.
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.
