FX.co ★ Analysis and trading tips for EUR/USD on March 29

Analysis of transactions in the EUR / USD pair

A signal to buy emerged after EUR/USD hit 1.0966. Coincidentally, the MACD line was starting to move above zero, so the pair rose by more than 25 pips. Sadly, it did not reach the nearest resistance level of 1.1015. No other signal appeared for the rest of the day.

EUR/USD traded sideways because no statistics were released yesterday morning and US data on foreign trade balance and wholesale stocks failed to raise demand for dollar in the afternoon.

But today, all focus will be shifted to the negotiations in Ukraine, as well as on the reports on the leading consumer climate index and import price index in Germany, which are unlikely to lead to a serious change in the balance of power in the market . There will also be a report on consumer confidence in the US, and this could put pressure on the dollar provided that the data was much worse than predicted. Fortunately, the statements of FOMC member John Williams could offset this. The housing price index in the US will have little effect on the market.

For long positions:

Buy euro when the quote reaches 1.1002 (green line on the chart) and take profit at the price of 1.1048 (thicker green line on the chart). However, it is a bit difficult to provoke a rally today as pressure is high in risky assets. In any case, when buying, make sure that the MACD line is above zero or is starting to rise from it. It is also possible to buy at 1.0965, but the MACD line should be in the oversold area as only by that will the market reverse to 1.1002 and 1.1048.

For short positions:

Sell euro when the quote reaches 1.0965 (red line on the chart) and take profit at the price of 1.0915. Pressure is likely to continue, especially in anticipation of the Fed's aggressive policy and weak data on the eurozone. But before selling, make sure that the MACD line is below zero, or is starting to move down from it. Euro can also be sold at 1.1002, however, the MACD line should be in the overbought area, as only by that will the market reverse to 1.0965 and 1.0915.

What's on the chart:

The thin green line is the key level at which you can place long positions in the EUR/USD pair.

The thick green line is the target price, since the quote is unlikely to move above this level.

The thin red line is the level at which you can place short positions in the EUR/USD pair.

The thick red line is the target price, since the quote is unlikely to move below this level.

MACD line - when entering the market, it is important to be guided by the overbought and oversold zones.

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 decisions based on the current market situation is an inherently losing strategy for an intraday trader.