FX.co ★ Analysis and trading tips for EUR/USD on October 13

Analysis of transactions in the EUR / USD pair

The test of 0.9679 happened when the MACD line was in the oversold area, which was a good reason to buy. This resulted in a price increase of about 25 pips. No other signals appeared for the rest of the day.

EUR/USD fell on Wednesday as industrial production data in the Eurozone, as well as the speech of ECB President Christine Lagarde, did not impress the market. Growth in the US producer price index also strengthened the position of dollar.

Most likely, quotes will continue to decline as the report on Germany's consumer price index and speech of ECB board member Joachim Nagel will do little to help euro. CPI data in the US will also set the direction of the pair, especially if the indicator shows that US inflation continues to increase. This could lead to euro returning to yearly lows. But if inflation is reduced, risk appetite will surge, which will open the way to parity. The jobless claims report for the US will not play any role in the market.

For long positions:

Buy euro when the quote reaches 0.9725 (green line on the chart) and take profit at the price of 0.9788. Although there is little chance for price growth, traders could still provoke a slight upward correction.

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 0.9679, but the MACD line should be in the oversold area as only by that will the market reverse to 0.9725 and 0.9788.

For short positions:

Sell euro when the quote reaches 0.9679 (red line on the chart) and take profit at the price of 0.9636. Pressure will return after the release of strong inflation in the US and rising expectations of further rate hikes by the Fed.

Take note that when selling, the MACD line should be below zero or is starting to move down from it. Euro can also be sold at 0.9725, but the MACD line should be in the overbought area as only by that will the market reverse to 0.9679 and 0.9636.

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.