Analysis of transactions and tips for trading EUR/USD
The test of 1.0886 occurred during the drop of the MACD line from zero. This provoked a sell signal, which led to a price decrease of 15 pips. Sometime later, another test took place, this time at 1.0907 and when the MACD line moved upward from zero. This resulted in a rise of over 40 pips.
The ECB's stance on monetary policy remained unchanged, leading to a rise in euro. Christine Lagarde's statements about the need for more data before lowering interest rates also set off new buying pressure. Today, reports on Germany's industrial production volume, producer price index, and France's trade balance will come out. However, the most important will be the GDP and employment data for the eurozone. Positive figures will lead to the continuation of the upward trend.
For long positions:
Buy when euro hits 1.0957 (green line on the chart) and take profit at the price of 1.1005. Growth could occur, in continuation of the upward trend.
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 1.0927, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0957 and 1.1005.
For short positions:
Sell when euro reaches 1.0927 (red line on the chart) and take profit at the price of 1.0887. Pressure will increase in the case of unsuccessful bullish activity around the daily high and weak data on the eurozone and GDP.
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 1.0957, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0927 and 1.0887.
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.