Analysis of transactions and trading tips on EUR/USD
The test of 1.0709 occurred during the decline of the MACD line from zero. This provoked a sell signal, but after a 10-pip drop, the downward movement halted.
Comments from ECB member Philip Lane and positive data on industrial production in the Eurozone did not help euro recover. And looking at the empty macroeconomic calendar this afternoon, the pair will likely see a new downward trend. Euro may even reach a new yearly low if FOMC member Austan Goolsbee mentions the need for a wait-and-see policy.
For long positions:
Buy when euro hits 1.0725 (green line on the chart) and take profit at the price of 1.0778. Strong growth will not occur, but there may be a small upward correction.
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 1.0696, but the MACD line should be in the oversold area, as only by that will the market reverse to 1.0725 and 1.0778.
For short positions:
Sell when euro reaches 1.0696 (red line on the chart) and take profit at the price of 1.0656. Pressure will return in the case of an unsuccessful attempt to break through the daily high.
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 1.0725, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0696 and 1.0656.
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.