Analysis of transactions and tips for trading EUR/USD
The test of 1.0532, coinciding with the drop of the MACD line from zero, prompted a sell signal that led to a price decrease of around 40 pips.
Data on Germany's industrial orders, Italy's trade balance, and France's retail trade volume went unnoticed by the market, unlike the US labor market report. The increase in new jobs led to a sharp strengthening of dollar, albeit not as long-lasting as many expected. As for today, pressure on euro may quickly return after the speech of ECB Vice President Luis de Guindos and the release of data on investor confidence from Sentix.
For long positions:
Buy when euro hits 1.0563 (green line on the chart) and take profit at the price of 1.0610. Growth will occur, especially if the bulls show strength after updating daily lows. 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 1.0532, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0563 and 1.0610.
For short positions:
Sell when euro reaches 1.0532 (red line on the chart) and take profit at the price of 1.0475. Pressure may return at any moment, especially after strong statistics on the US labor market last Friday, which increased confidence in future interest rate hikes. 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 1.0563, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0532 and 1.0475.
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.