Analysis of transactions and tips for trading EUR/USD
The test of 1.0773 on Monday afternoon, coinciding with the decline of the MACD line from zero, triggered a sell signal that resulted in a price decrease of about 30 pips.
The pair remains bullish as expectations that the Fed will finally decide not to raise rates at this week's meeting continue to grow, maintaining high volatility even in the face of an empty economic calendar yesterday. And today, markets await Germany's consumer price index, as well as figures on the economic sentiment in both Germany and the eurozone. If the data turns out to be not as bad as expected, demand for euro will rise. But if the numbers disappoint, euro will weaken slightly, encouraging traders to take a pause ahead of the release of key inflation data in the US.
For long positions:
Buy when euro hits 1.0798 (green line on the chart) and take profit at the price of 1.0842. Growth could continue after good statistics. However, when buying, traders should make sure that the MACD line lies above zero or rises from it. Euro can also be bought after two consecutive price tests of 1.0770, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0798 and 1.0842.
For short positions:
Sell when euro reaches 1.0770 (red line on the chart) and take profit at the price of 1.0728. Pressure may return amid inactivity around 1.0798. However, when selling, traders should make sure that the MACD line lies below zero or drops down from it. Euro can also be sold after two consecutive price tests of 1.0798, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0770 and 1.0728.
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.