FX.co ★ Analysis and trading tips for EUR/USD on September 20

Analysis of transactions in the EUR / USD pair

Euro tested 0.9994 at the time when the MACD was just starting to move above zero, which was a good signal to buy. However, there was no price increase, and after several unsuccessful attempts to consolidate above 0.9994, pressure returned. It was only in the afternoon, during the second test of the level, that euro moved up by 30 pips.

EUR/USD remained trading in a ranging channel. Obviously, the market was not affected by the statements made by ECB representatives, as well as the housing market report from the US.

A number of reports are due out today, such as Germany's producer price index and ECB balance of payments. However, they are of little interest, so it is likely that the pair will grow, especially after the speech of ECB President Christine Lagarde. In the afternoon, reports on the US real estate market will be released, which will play an important role in determining future economic outlook. A sharp decline in the indicators could hurt dollar, which will lead to a rise in euro.

For long positions:

Buy euro when the quote reaches 1.0039 (green line on the chart) and take profit at the price of 1.0076. Growth is unlikely, but there is a chance for an upward correction before tomorrow's Fed meeting.

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 1.0013, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0039 and 1.0076.

For short positions:

Sell euro when the quote reaches 1.0013 (red line on the chart) and take profit at the price of 0.9976. Pressure will return amid an unsuccessful attempt of buyers to get out of weekly highs. Weak statistics for the Euro area will also prompt a fall.

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 1.0039, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0013 and 0.9976.

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.