Analysis of transactions and tips for trading EUR/USD
The test of 1.0734 occurred when the MACD line moved upward from zero, prompting a signal to buy. This, along with the recent US statistics, led to a price increase of over 100 pips.
Euro rose because even though the 3rd quarter GDP data for the eurozone remained unchanged, the report on business sentiment in both Germany and the eurozone turned out to be slightly better than forecasts. Furthermore, the US released data showing that inflation in the region decreased more than expected, thereby leading to a sharp jump in euro by more than 100 pips during the US session.
Today, market movement may be influenced by figures on consumer prices for France and Italy, as well as the industrial production volume and trade balance in the eurozone. If the numbers surpass expectations, euro will continue to rise.
For long positions:
Buy when euro hits 1.0881 (green line on the chart) and take profit at the price of 1.0944. Growth will occur in continuation of the bullish trend and after strong statistics for the eurozone.
When buying, make sure that the MACD line lies above zero or rises from it. Euro can also be bought after two consecutive price tests of 1.0850, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0881 and 1.0944.
For short positions:
Sell when euro reaches 1.0850 (red line on the chart) and take profit at the price of 1.0814. Pressure will increase after an unsuccessful attempt to consolidate at the daily high and weak economic data from the eurozone.
When selling, make sure that the MACD line lies under zero or drops down from it. Euro can also be sold after two consecutive price tests of 1.0881, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0850 and 1.0814.
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.