Analysis of transactions and tips for trading EUR/USD
The test of 1.0866 occurred during the rise of the MACD line from zero. This provoked a buy signal, which led to a price increase of 10 pips. Pressure on the pair returned shortly after.
Activity data in the services sector of eurozone countries came out good, with only Italy lagging behind. This led to the composite PMI remaining above 50 points, favoring euro. However, the uncertainty among Fed representatives about what to do next with interest rates added headaches for traders, so dollar bulls continued to be active yesterday. Although ahead lies data on industrial orders in France and Germany, as well as the retail sales report for the eurozone, market players will ignore them, as they will focus more on the data on the US labor market.
For long positions:
Buy when euro hits 1.0840 (green line on the chart) and take profit at the price of 1.0874. Growth will occur after good data from the eurozone, but do not expect strong activity.
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 1.0822, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0840 and 1.0874.
For short positions:
Sell when euro reaches 1.0822 (red line on the chart) and take profit at the price of 1.0789. Pressure will increase in the case of unsuccessful consolidation around the daily 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 1.0840, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0822 and 1.0789.
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.
