FX.co ★ Analysis and trading tips for EUR/USD on March 6

Analysis of transactions and tips for trading EUR/USD

The test of 1.0605 occurred when the MACD line was already far from zero, so the downside potential was limited. No other signals appeared for the rest of the day.

EUR/USD rose on Friday, thanks to good Services PMI reports from Germany and the eurozone. Similar non-manufacturing PMI data in the US was ignored by markets, paving the way for a further rally in the afternoon.

Today, during the European session, Germany will publish activity data on its construction section, followed by a retail sales report for the eurozone. ECB member Philip Lane will also give a speech; however, it should be of little interest to the market. The US will release data on industrial orders in the afternoon, but it will also be ignored by traders. Therefore, there is a huge chance that the euro will continue rising and could possibly hit new daily highs.

For long positions:

Buy euro when the quote reaches 1.0658 (green line on the chart) and take profit at the price of 1.0680. Growth will occur if economic reports from the Euro area exceed 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 1.0641, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0658 and 1.0680.

For short positions:

Sell euro when the quote reaches 1.0641 (red line on the chart) and take profit at the price of 1.0615. Pressure will return if the Euro area reports an unexpected drop in construction activity and retail sales. However, make sure that when selling, the MACD line is under zero or is starting to move down from it. Euro can also be sold at 1.0658, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0641 and 1.0615.

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.