Analysis of transactions and trading tips on EUR/USD
The test of 1.0769 occurred during the rise of the MACD line from zero. This provoked a buy signal, but an upward movement did not happen, as data from Germany and the reduction in industrial production disappointed market players.
The US will publish data on trade balance and consumer credit volume today. However, those indicators do not particularly affect market volatility, so nothing serious will happen before the speeches of FOMC representatives. Pay special attention to the statements of Susan Collins and Thomas Barkin, as preparations for rate cuts and a dovish tone could trigger a new sell-off of dollar, leading to an increase in EUR/USD.
For long positions:
Buy when euro hits 1.0773 (green line on the chart) and take profit at the price of 1.0796. Strong growth will occur after weak data from the US and a dovish stance from Fed representatives.
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 1.0757, but the MACD line should be in the oversold area, as only by that will the market reverse to 1.0773 and 1.0796.
For short positions:
Sell when euro reaches 1.0757 (red line on the chart) and take profit at the price of 1.0732. Pressure will return in the case of a firm position from Fed representatives.
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 1.0773, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0757 and 1.0732.
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.