Analysis of transactions and tips for trading EUR/USD
Further growth became limited as the test of 1.1043 on Monday afternoon coincided with the significant rise of the MACD line from zero. The second test, on the other hand, occurred when the MACD line went to the overbought zone, prompting a signal to sell. This resulted in a price decrease of over 40 pips.
Data on core prices, as well as GDP volume in the eurozone, pushed EUR/USD up slightly. However, reports on business activity and unemployment in both Germany and the eurozone could change the pair's direction, provided that the data comes out rather weak.
For long positions:
Buy when euro hits 1.1011 (green line on the chart) and take profit at the price of 1.1044. Bullish traders will return to the market in the event of very positive statistics from 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 1.0985, but the MACD line should be in the oversold area as only by that will the market reverse to 1.1011 and 1.1044.
For short positions:
Sell when euro reaches 1.0985 (red line on the chart) and take profit at the price of 1.0954. Pressure will return in case of weak PMI data. However, before selling, ensure that 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 1.0985 and 1.0954.
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.