Analysis of transactions and tips for trading EUR/USD
The test of 1.0763 occurred during the drop of the MACD line from zero. This provoked a sell signal, but a sharp downward correction did not happen, keeping the pair within a horizontal channel.
Comments from ECB Executive Board members Joachim Nagel and Piero Cipollone did not affect the market, while weak economic forecasts from the European Commission increased pressure on the pair.
Ahead lies several reports capable of triggering a sell-off in EUR/USD. Weak figures on the business sentiment index and the present situation index from the ZEW Institute will lead to another attempt by sellers to return to the development of a downward trend. Positive figures will likely keep the pair at least at current levels until the release of inflation data in the US.
For long positions:
Buy when euro hits 1.0783 (green line on the chart) and take profit at the price of 1.0819. Growth will occur only with very positive statistics for Germany and the eurozone.
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 1.0765, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0783 and 1.0819.
For short positions:
Sell when euro reaches 1.0765 (red line on the chart) and take profit at the price of 1.0727. Pressure will increase amid very weak economic data.
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 1.0783, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0765 and 1.0727.
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.
