Analysis of transactions and tips for trading EUR/USD
Further growth became limited because the test of 1.0565 took place when the MACD line made a sharp upward move from zero.
Risk appetite continued to surge because even though the data on the ECB's balance of payments did not have a significant impact on euro, traders expected the Fed to say that interest rates will not rise in November. And sure enough, Fed Chairman Jerome Powell announced exactly these statements, resulting in the further strengthening of euro and a decline in dollar. Today, there will be data on Germany's producer price index, which may maintain the upward potential.
For long positions:
Buy when euro hits 1.0580 (green line on the chart) and take profit at the price of 1.0605. Growth will occur in continuation of yesterday's trend, especially after dovish statements from Fed representatives. 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 1.0559, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0580 and 1.0605.
For short positions:
Sell when euro reaches 1.0559 (red line on the chart) and take profit at the price of 1.0534. Pressure will increase in the case of weak buyer activity around the daily high and weak statistics from Germany. 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 1.0580, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0559 and 1.0534.
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.