Analysis of transactions and tips for trading EUR/USD
Further decline became limited because the test of 1.0810 occurred during the sharp drop of the MACD line from zero. Then, euro rose in price after the release of business activity data in the eurozone's manufacturing and service sectors. During the US session, the pair changed direction, as similar data from the US exceeded expectations. The strong figures reduced risk appetite, leading to the pair returning to the horizontal channel. Most likely, euro will continue to decline after the release of data on Germany. Market players should look out for reports on GDP, business environment, present situation, and economic expectations. There will also be speeches from ECB Executive Board members Isabel Schnabel and Joachim Nagel.
For long positions:
Buy when euro hits 1.0835 (green line on the chart) and take profit at the price of 1.0869. Growth will occur after very good statistics from Germany.
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 1.0818, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0835 and 1.0869.
For short positions:
Sell when euro reaches 1.0818 (red line on the chart) and take profit at the price of 1.0780. Pressure will increase in the case of unsuccessful bullish activity around the daily high and very weak data from Germany.
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 1.0835, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0818 and 1.0780.
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.
