FX.co ★ Analysis and trading tips for EUR/USD on November 11

Analysis of transactions in the EUR / USD pair

The test of 1.0023 happened when the MACD line was just starting to move below zero, which was a good reason to sell. This led to a price decrease of about 40 pips. As for long positions at 0.9979, they resulted in losses as after updating the level, euro continued to decline.

US CPI data for October surprised everyone as they turned out much better than expected. The sharp decline allowed the Fed to slow down the cycle of aggressive rate hike, which is in favor of risky assets.

Today, a report on Germany's consumer price index is due, but it is unlikely to have a significant impact on markets. The economic forecasts for the EU economy, however, is important as it could prompt a rise in euro if the data are positive. Otherwise, price growth will be unlikely. Speeches by ECB representatives Fabio Panetta and Philip Lane will be of little interest.

In the afternoon, the US will publish its data on consumer expectations, followed by consumer sentiment. If the latter improves, demand for dollar will return, which will lead to a downward correction in EUR/USD.

For long positions:

Buy euro when the quote reaches 1.0244 (green line on the chart) and take profit at the price of 1.0317. Growth will occur if there are good forecasts for the eurozone economy. But remember that when buying, the MACD line should be above zero or is starting to rise from it.

Euro can also be bought at 1.0189, however, the MACD line should be in the oversold area as only by that will the market reverse to 1.0244 and 1.0317.

For short positions:

Sell euro when the quote reaches 1.0189 (red line on the chart) and take profit at the price of 1.0117. Pressure will return after unsuccessful consolidation above monthly highs and weak reports on the eurozone. 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 1.0244, however, the MACD line should be in the overbought area, as only by that will the market reverse to 1.0189 and 1.0117.

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.