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

Analysis of transactions in the EUR / USD pair

Euro tested 1.0747, however, the MACD line was far above zero, so the upside potential was limited. Sometime later, another test took place, but a similar situation occurred so there was no buy signal there either. No other entry points appeared in the market for the rest of the day.

Markets ignored the speeches given by Bundesbank VP Claudia Buch and ECB representative Isabel Schnabel yesterday, as well as the comments of Fed Chairman Jerome Powell, which indicated that the government should not interfere with the central bank, letting it manage the economy on its own. And since there are no important statistics scheduled to be released today, it is likely that trading will lag, especially as Germany's 10-year Treasury yields will be interesting only for bond traders, while the US crude oil and 10-year Treasury yields report will not have any impact on the forex market in the short term. It is best to bet on positions within the horizontal channel.

For long positions:

Buy euro when the quote reaches 1.0763 (green line on the chart) and take profit at the price of 1.0809. 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 1.0724, however, the MACD line should be in the oversold area as only by that will the market reverse to 1.0763 and 1.0809.

For short positions:

Sell euro when the quote reaches 1.0724 (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 1.0763, however, the MACD line should be in the overbought area, as only by that will the market reverse to 1.0724 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.