Analysis of transactions and tips for trading EUR/USD
The test of 1.1122 on Thursday afternoon, coinciding with the drop of the MACD line from zero, prompted a sell signal that led to a price decrease of over 70 pips.
Euro fell as demand weakened amid the ECB's decision to further raise interest rates. But ECB President Christine Lagarde did make it clear that a pause may be taken in September, as long as inflation data in the eurozone improves.
Strong GDP data from the US also led to the decline of euro, which may continue today if the GDP volumes of France, Spain, and Germany come out weaker than expected. Falling inflation in Germany may also lead to sell-offs in EUR/USD.
For long positions:
Buy when euro hits 1.1011 (green line on the chart) and take profit at the price of 1.1084. Bullish traders will attempt to reenter the market in the event of very positive statistics for the eurozone. However, before buying, ensure that the MACD line lies above zero or just starting to rise from it.
Euro can also be bought after two consecutive price tests of 1.0965, but the MACD line should be in the oversold area as only by that will the market reverse to 1.1011 and 1.1084.
For short positions:
Sell when euro reaches 1.0965 (red line on the chart) and take profit at the price of 1.0909. Pressure will remain in the case of poor data from the eurozone. However, ensure that when selling, the MACD line lies below zero or drops down from it.
Euro can also be sold after two consecutive price tests of 1.1011, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0965 and 1.0909.
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.