FX.co ★ Analysis and trading tips for EUR/USD on April 12

Analysis of transactions and tips for trading EUR/USD

Euro tested 1.0898 when the MACD line was just starting to climb above zero, which was a pretty good reason to buy. This resulted in a price increase of about 20 pips. No other market signal appeared for the rest of the day.

EUR/USD rose on Tuesday, thanks to the good data on investor confidence and less active reduction in the volume of retail sales in the eurozone. Statements of FOMC members Austan Goolsbee and Patrick Harker also did not allow dollar to recover its positions.

Today, the economic calendar in the Euro area is empty, so expect the pair to decline slightly in the morning. The upcoming speech of ECB representatives also has little significance to the market as much more interesting are the reports on consumer prices and core inflation from the US that are due out this afternoon. A larger-than-expected decline in inflation will lead to a strong rise in euro, while an increase or no change will prompt a very sharp fall. The Fed minutes will not be of great importance because it is already clear to everyone that the committee's position remains unchanged and is aimed at combating high prices.

For long positions:

Buy euro when the quote reaches 1.0937 (green line on the chart) and take profit at the price of 1.0996. Growth could occur if there is a sharp decrease in US inflation. But remember that before buying, make sure that the MACD line is above zero or is starting to rise from it. Euro can also be bought at 1.0895; however, the MACD line should be in the oversold area, as only by that will the market reverse to 1.0937 and 1.0996.

For short positions:

Sell euro when the quote reaches 1.0895 (red line on the chart) and take profit at the price of 1.0840. Pressure will return if reports show that US inflation rose in March this year. But remember that before selling, make sure that the MACD line is under zero or is starting to move down from it. Euro can also be sold at 1.0937; however, the MACD line should be in the overbought area as only by that will the market reverse to 1.0895 and 1.0840.

What's on the chart:

Thin green line - entry price at which you can buy EUR/USD

Thick green line - estimated price where you can set Take-Profit (TP) or manually fix profits, as further growth above this level is unlikely.

Thin red line - entry price at which you can sell EUR/USD

Thick red line - estimated price where you can set Take-Profit (TP) or manually fix profits, as further decline below this level is unlikely.

MACD line- it is important to be guided by overbought and oversold areas when entering the market

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.