Analysis of transactions and trading tips on EUR/USD
Further growth became limited because the test of 1.0941 took place during the sharp upward move of the MACD line from zero.
Data from France and Italy did not affect the balance of power much. Now, market attention will focus on the reports from the US, particularly on the change in wholesale inventories. The speech of FOMC member John Williams will also affect market sentiment, but since dollar reacts differently to statements by Fed representatives, predicting its dynamics will be quite difficult. Listen first before making any decision.
For long positions:
Buy when euro hits 1.0960 (green line on the chart) and take profit at the price of 1.1001. Growth may occur after a dovish speech from Fed representatives.
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 1.0928, but the MACD line should be in the oversold area, as only by that will the market reverse to 1.0960 and 1.1001.
For short positions:
Sell when euro reaches 1.0928 (red line on the chart) and take profit at the price of 1.0885. Pressure will increase if no bullish activity appears due to the hawkish stance of Fed members and very strong statistics.
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 1.0960, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0928 and 1.0885.
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.
