Analysis of transactions and tips for trading EUR/USD
Further growth became limited because the test of 1.0549 coincided with the sharp rise of the MACD line from zero. The second test, meanwhile, prompted a sell signal, leading to a 15-pip decline in the pair.
Statements made by ECB Vice President Luis de Guindos and investor confidence data from Sentix had no impact on euro, so the pair traded within a sideways channel. However, today, pressure may return, especially after the release of Italy's industrial production report and the speech of ECB President Christine Lagarde. A firm stance and poor statistics will certainly lead to a price decrease.
For long positions:
Buy when euro hits 1.0572 (green line on the chart) and take profit at the price of 1.0610. Growth will occur in continuation of the upward correction, especially if the bulls show strength after updating daily lows. However, when buying, the MACD line should be above zero or rising from it.
Euro can also be bought after two consecutive price tests of 1.0555, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0572 and 1.0610.
For short positions:
Sell when euro reaches 1.0555 (red line on the chart) and take profit at the price of 1.0526. Pressure will return after tough statements from Lagarde and unsuccessful breakdown of the daily highs. However, 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 1.0555 and 1.0526.
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.