FX.co ★ Analysis and trading tips for EUR/USD on September 12

Analysis of transactions in the EUR / USD pair

Euro tested 1.0078 at the time when the MACD was just starting its upward movement from zero, which was a good signal to buy. This led to a price increase of more than 30 pips. No other signals appeared for the rest of the day.

EUR/USD rose and hit new monthly highs on Friday, thanks to the industrial production report in France and speech by ECB President Christine Lagarde. However, the bullish grip weakened by the end of the week, resulting in a downward correction during the US trading session. Even so, demand for euro remains strong, so it is likely that a new bullish trend will develop. The speeches of ECB representatives today may also support euro in its difficult task of recovering against dollar, not to mention having no scheduled statistics in the afternoon will play on the side of buyers.

For long positions:

Buy euro when the quote reaches 1.0180 (green line on the chart) and take profit at the price of 1.0227. Growth will occur as the market remains bullish, thanks to the decision of the ECB to raise rates by 0.75%. But take note that when buying, the MACD line should be above zero or is starting to rise from it. Euro can also be bought at 1.0115, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0180 and 1.0227.

For short positions:

Sell euro when the quote reaches 1.0115 (red line on the chart) and take profit at the price of 1.0043. However, pressure is unlikely to return earlier this week, so be careful about selling. Also, take note that when selling, the MACD line should be below zero or is starting to move down from it. Euro can be sold at 1.0180, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0115 and 1.0043.

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