Analysis of transactions and tips for trading EUR/USD
The test of 1.0790, coinciding with the decline of the MACD line from zero, prompted a sell signal that led to a price decrease of around 25 pips.
Fed Chairman Jerome Powell remained hawkish in his speech at the Jackson Hole symposium. However, it did not contain anything new, so dollar demand did not surge and the pair did not update the monthly lows. This limited the downward potential, and in the near future might help euro recover its position after a bearish August.
Reports on the M3 money supply aggregate and private sector lending in the eurozone will come out today, in which poor indicators may put pressure on the pair. However, this will not last long. The speech of ECB board member Joachim Nagel may be ignored by the market.
For long positions:
Buy when euro hits 1.0835 (green line on the chart) and take profit at the price of 1.0874. Growth may occur today. However, when buying, ensure that the MACD line lies above zero or just starts to rise from it.
Euro can also be bought after two consecutive price tests of 1.0805, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0835 and 1.0874.
For short positions:
Sell when euro reaches 1.0805 (red line on the chart) and take profit at the price of 1.0773. Pressure will increase in the event of a breakdown of the daily low. However, when selling, traders must ensure that the MACD line lies below zero or drops down from it.
Euro can also be sold after two consecutive price tests of 1.0835, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0805 and 1.0773
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.