FX.co ★ Analysis and trading tips for EUR/USD on February 17

Analysis of transactions and tips for trading EUR/USD

The test of 1.0716 occurred when the MACD line was already far from zero, so the upside potential was limited. Sometime later, there was another test, but this time it was at 1.0686 and the market signal was to sell. But since the MACD was also far from zero, the price decrease was not very strong.

Italy's trade balance report and the ECB's economic bulletin failed to help euro recover on Thursday, as did the statements of ECB Board member Fabio Panetta. However, Germany's PPI and France's CPI, which are due out today, could lead to an upward spike in the currency if the figures turn out to be better than expected. The ECB's current account balance will not affect the market's direction.

In the afternoon, besides the speeches of FOMC members Michelle Bowman and Thomas Barkin, there is nothing to help dollar, so a slight uptrend in EU/USD can be expected. The import price index and leading indicators are of no interest.

For long positions:

Buy euro when the quote reaches 1.0656 (green line on the chart) and take profit at the price of 1.0694. Growth will occur if the inflation data for the eurozone exceeds expectations. However, make sure that when buying, the MACD line is above zero or is starting to rise from it. Euro can also be bought at 1.0630, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0656 and 1.0694.

For short positions:

Sell euro when the quote reaches 1.0630 (red line on the chart) and take profit at the price of 1.0596. Pressure may return at any moment, especially considering the current trend. However, make sure that when selling, the MACD line is below zero or is starting to move down from it. Euro can also be sold at 1.0656, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0630 and 1.0596.

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.