FX.co ★ Analysis and trading tips for EUR/USD on January 10

Analysis of transactions in the EUR / USD pair

The test of 1.0691 occurred when the MACD line was just starting to move up from zero, which seemed to be a good signal to buy. However, the euro did not go up, leading to losses. No other signals appeared for the rest of the day.

Germany's industrial production report and eurozone's unemployment data for November matched the forecasts so euro did not see any increase on Monday morning. By afternoon, ignored the US data, which resulted in EUR/USD moving markets up during the US session.

There are no statistics scheduled to be released today so volatility is likely to burst after the speeches of Bundesbank and ECB representatives. Hawkish comments will support euro, but this may not last long as also ahead is a speech from Fed Chairman Jerome Powell, who may continue to push the idea that there needs to be further rate increases. That will return demand for dollar and lead to a decline in EUR/USD.

For long positions:

Buy euro when the quote reaches 1.0747 (green line on the chart) and take profit at the price of 1.0798. Although there is a chance for growth today, a downward correction could also happen at any moment. Nevertheless, remember that when buying, the MACD line should be above zero or is starting to rise from it. Euro can also be bought at 1.0707, however, the MACD line should be in the oversold area as only by that will the market reverse to 1.0747 and 1.0798.

For short positions:

Sell euro when the quote reaches 1.0707 (red line on the chart) and take profit at the price of 1.0666. Pressure will return if the attempt to consolidate at the weekly high fails. But 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 1.0747, however, the MACD line should be in the overbought area, as only by that will the market reverse to 1.0707 and 1.0666.

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.