Analysis of transactions and tips for trading EUR/USD
Further decline became limited because the first test of 1.0713 coincided with the sharp drop of the MACD line away from zero. The second test, on the other hand, prompted a buy signal, resulting in a price increase of over 25 pips.
The pair rose during the Asian session, following reports that the ECB expects inflation to exceed 3% next year. It strengthened the arguments in favor of another rate hike, even if most economists still do not expect any changes. As for today, a report on changes in the eurozone's industrial output will come out, where a decrease in the figure will return pressure on risky assets. There will also be inflation data from the US.
For long positions:
Buy when euro hits 1.0755 (green line on the chart) and take profit at the price of 1.0795. Growth will occur after very strong data from the eurozone. 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 1.0730, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0755 and 1.0795.
For short positions:
Sell when euro reaches 1.0730 (red line on the chart) and take profit at the price of 1.0690. Pressure may return at any moment, especially after weak data from the eurozone ahead of the latest inflation report in the US. However, when 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 1.0755, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0730 and 1.0690.
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.