Analysis of transactions and trading tips on EUR/USD
Further decline became limited because the test of 1.0560 coincided with the sharp drop of the MACD line from zero.
The recently released data for the eurozone returned pressure on euro, albeit not as strong as expected. Today, speeches from Fed members lie ahead, and they will likely comment on the latest inflation data in the US, as well as talk about the future monetary policy. Volatility may also be influenced by the data on the US Manufacturing Index from ISM, where poor figures could allow euro buyers to recover from the morning decline.
For long positions:
Buy when euro hits 1.0562 (green line on the chart) and take profit at the price of 1.0604. Growth will occur after weak data from the US inflation and dovish positions from Fed representatives.. However, when buying, ensure that the MACD line lies above zero or rises from it.
Euro can also be bought after two consecutive price tests of 1.0533, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0562 and 1.0604.
For short positions:
Sell when euro reaches 1.0533 (red line on the chart) and take profit at the price of 1.0496. Pressure may return in the case of strong US statistics. However, when selling, make sure that the MACD line lies below zero or drops down from it.
Euro can also be sold after two consecutive price tests of 1.0562, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0533 and 1.0496.
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.