Analysis of transactions and tips for trading EUR/USD
The test of 1.0948 took place at a time when the MACD line moved downward from zero, provoking a sell signal. As a result, the pair fell in price by more than 30 pips. Meanwhile, purchases on the rebound from 1.0917 did not bring much profit, as the pressure on the pair persisted.
Weak business activity data in the eurozone's service and manufacturing sectors put pressure on euro in the morning, leading to a price decline. This continued in the afternoon, as similar indicators from the US caused a surge in dollar demand, resulting in further sell-offs in EUR/USD.
Today, interesting data from Germany will come out, namely the IFO's indices on business climate, present situation, and economic expectations. Disappointing numbers will keep euro under pressure. Statements from ECB Executive Board members Isabel Schnabel and Philip Lane will also affect market sentiment.
For long positions:
Buy when euro hits 1.0928 (green line on the chart) and take profit at the price of 1.0966. Growth will occur after strong data from the Eurozone and the firm position of the ECB.
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 1.0907, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0928 and 1.0966.
For short positions:
Sell when euro reaches 1.0907 (red line on the chart) and take profit at the price of 1.0876. Pressure will return if indicators from Germany come out weaker than expected.
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 1.0928, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0907 and 1.0876.
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.