Analysis of transactions and tips for trading EUR/USD
Euro tested 1.0974 when the MACD line was just starting to go below zero, which was a good reason to sell. This resulted in a price decrease of over 30 pips.
Euro fell on Monday, indicating that markets ignored the speeches made by ECB representatives. The movement was a continuation of the correction that many expected for quite some time.
Today, buyers may return to the market as relatively good macroeconomic statistics are expected in the morning. Germany and the eurozone's business sentiment index and present situation index will be decisive, in which good numbers will lead to a more solid surge of euro upwards. This will allow the currency to recover from its losses yesterday. In the afternoon, real estate market reports will be released from the US, namely the volume of building permits issued and the number of new foundations laid. If the indicators show a decrease, pressure on dollar will escalate, resulting in another rise in euro. The speech of FOMC member Michelle Bowman will be of little interest, but traders should still anticipate and listen to it.
For long positions:
Buy euro when the level of 1.0956 (green line on the chart) is reached and then take profit at the price of 1.0982. Growth may occur after very good statistics from Germany and the eurozone. 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 1.0933, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0956 and 1.0982.
For short positions:
Sell euro when the level of 1.0933 (red line on the chart) is reached and then take profit at the price of 1.0906. Pressure may return at any moment, especially amid good real estate market reports. 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 1.0956, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0933 and 1.0906.
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.