Analysis of transactions and tips for trading EUR/USD
The test of 1.0972 on Tuesday afternoon, coinciding with the decline of the MACD line from zero, prompted a sell signal that led to a price decrease of around 20 pips.
Business activity data in the manufacturing sectors of both the eurozone and the US maintained market balance yesterday. As for today, since traders do not have much interest in the upcoming labor market report in Spain, an upward correction may occur in EUR/USD during the European session.
For long positions:
Buy when euro hits 1.1003 (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 a break beyond the daily high. 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 1.0981, but the MACD line should be in the oversold area as only by that will the market reverse to 1.1003 and 1.1044.
For short positions:
Sell when euro reaches 1.0981 (red line on the chart) and take profit at the price of 1.0929. Pressure may return after teh release of the ADP 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 1.1003, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0981 and 1.0929.
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.