Analysis of transactions and trading tips on EUR/USD
Further decline became limited because the test of 1.0808 occurred at a time when the MACD line descended quite sharply from zero. The pair quickly recovered its losses sometime later.
Euro rose in price immediately after the release of positive business activity data for the eurozone. As for today, there will be a report from the ISM regarding the service PMI in the US, from which euro can quickly change direction. Strong data will bring pressure on the pair, leading to a sell-off and a retest of the weekly low. A weak report, meanwhile, will let euro continue its rally.
For long positions:
Buy when euro hits 1.0842 (green line on the chart) and take profit at the price of 1.0888. Strong growth will occur only in the case of weak ISM data.
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 1.0810, but the MACD line should be in the oversold area, as only by that will the market reverse to 1.0842 and 1.0888.
For short positions:
Sell when euro reaches 1.0810 (red line on the chart) and take profit at the price of 1.0770. Pressure will increase amid a strong report indicating the good state of the US service sector.
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 1.0842, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0810 and 1.0770.
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.