Analysis of transactions and tips for trading EUR/USD
Euro tested 1.0998 when the MACD line was just starting to climb above zero, which was a good reason to buy. This resulted in a price increase of about 45 pips. No other market signal appeared for the rest of the day.
Euro traded upwards on Thursday morning, thanks to the CPI data from Germany and the better-than-expected industrial production report from the eurozone. And although the weak data on US jobless claims spoiled the mood of investors in the afternoon, everything was compensated by the drop in the producer price index, which temporarily helped dollar. But after a while, the growth of EUR/USD continued.
There is nothing that could change the situation in the market today even though ahead are CPI data from France and Spain, as well as a speech from ECB member Joachim Nagel. There are also important reports in the afternoon, such as the changes in retail trade volume and industrial production in the US. Growth in these indicators may offset the decline of dollar. The consumer sentiment index and inflation expectations from the University of Michigan will also be quite interesting.
For long positions:
Buy euro when the level of 1.1076 (green line on the chart) is reached and then take profit at the price of 1.1111. Growth will occur if the upcoming eurozone statistics exceed expectations. However, before buying, traders should make sure that the MACD line is above zero or is starting to rise from it. Euro can also be bought at 1.1049, but the MACD line should be in the oversold area as only by that will the market reverse to 1.1076 and 1.1111.
For short positions:
Sell euro when the level of 1.1049 (red line on the chart) is reached and then take profit at the price of 1.1013. Pressure is likely to return this afternoon as traders will close positions due to the weekend. However, make sure that before selling, the MACD line is below zero or is starting to move down from it. Euro can also be sold at 1.1076, but the MACD line should be in the overbought area as only by that will the market reverse to 1.1049 and 1.1013.
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.