Analysis of transactions and tips for trading EUR/USD
There was no strong movement in the pair on Wednesday despite the surge in volatility in the afternoon.
EUR/USD rose on Wednesday morning, thanks to Italy's retail trade data and Germany's industrial output report. US labor market data from the ADP also led to a spike in volatility, but the pair's direction was rather unclear.
Today, there is nothing that could influence the market, so expect trading to remain within the current price channel. And even if the US publishes its weekly jobless claims report in the afternoon, followed by a speech from FOMC member Michael Barr, they are unlikely to trigger a strong downward move in the pair.
For long positions:
Buy euro when the quote reaches 1.0561 (green line on the chart) and take profit at the price of 1.0591. Growth is unlikely today. If there is, it will only be a slight upward correction and nothing more. Nevertheless, make sure that when buying, the MACD line is above zero or is starting to rise from it. Euro can also be bought at 1.0537, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0561 and 1.0591.
For short positions:
Sell euro when the quote reaches 1.0537 (red line on the chart) and take profit at the price of 1.0504. Pressure will return if the US releases a strong labor market data. However, make sure that when selling, the MACD line is under zero or is starting to move down from it. Euro can also be sold at 1.0561, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0537 and 1.0504.
What's on the chart:
The thin green line is the key level at which you can place long positions in the EUR/USD pair.
The thick green line is the target price, since the quote is unlikely to move above this level.
The thin red line is the level at which you can place short positions in the EUR/USD pair.
The thick red line is the target price, since the quote is unlikely to move below this level.
MACD line - when entering the market, it is important to be guided by the overbought and oversold zones.
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.