Analysis of transactions and tips for trading EUR/USD
The test of 1.0849 occurred during the upward move of the MACD line from zero. This provoked a buy signal, which resulted in a price increase of around 30 pips.
A rise in Germany's CPI data and a decrease in the unemployment rate pushed EUR/USD up before the release of the Fed's monetary policy decision. Very poor US labor market statistics from the ADP seemed to offer hope for a softer tone from the committee, but that did not happen. Following the meeting, the Fed kept interest rates unchanged, stating that it will not be lowered soon, let alone in March of this year. This led to dollar demand surging, pulling the pair down to the weekly low.
Today, several things could put more pressure on euro, such as the speech of ECB President Christine Lagarde. Business activity data in Germany and the eurozone will also affect market direction, in which a decline in the indicators, along with a decrease in the eurozone's consumer price index, will lead to another sell-off of the pair. The region's unemployment rate will not have much impact on the market.
For long positions:
Buy when euro hits 1.0828 (green line on the chart) and take profit at the price of 1.0879. Growth will occur in the case of very good data from Germany and the eurozone, as well as a sharp increase in price pressure in the region.
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 1.0803, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0828 and 1.0879.
For short positions:
Sell when euro reaches 1.0803 (red line on the chart) and take profit at the price of 1.0726. Pressure on the pair will increase amid very weak macroeconomic statistics and a more pronounced slowdown in price pressure.
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 1.0828, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0803 and 1.0762.
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.