Analysis of transactions and tips for trading EUR/USD
Further growth became limited because the test of 1.0606, which occurred on Tuesday afternoon, coincided with the sharp rise of the MACD line from zero. The second test, meanwhile, prompted a sell signal that led to a price decrease of over 40 pips.
The statements made by ECB Board member Philip Lane kept euro afloat yesterday. However, weak reports from the US prompted another sell-off, resulting in another update of the monthly low.
Today, data on Germany's leading consumer climate index will come out, followed by reports on the M3 money supply aggregate and private sector lending volume. Any reduction in lending will pose a serious threat, especially in the face of high interest rates.
For long positions:
Buy when euro hits 1.0572 (green line on the chart) and take profit at the price of 1.0606. Growth may occur, but it will only be a small upward correction within a bearish market. Poor data from the eurozone may dampen any desire to buy.
Note that when buying, the MACD line should be above zero or rising from it. Euro can also be bought after two consecutive price tests of 1.0554, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0572 and 1.0606.
For short positions:
Sell when euro reaches 1.0554 (red line on the chart) and take profit at the price of 1.0519. Pressure may return at any moment, especially in such a bearish market.
Note that when selling, the MACD line should be below zero or dropping down from it. Euro can also be sold after two consecutive price tests of 1.0572, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0554 and 1.0519.
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.