FX.co ★ Analysis and trading tips for EUR/USD on May 5 (US session)

The first test of 1.1025 happened when the MACD line was already far from zero, so the downward potential was limited. On the second test, it led to a buy signal, but there was no large upward movement.

Ahead are labor market reports from the US, where an increase in the number of employed in the non-agricultural sector could lead to a decline in EUR/USD. But if the indicator decreases, along with the level of average hourly wages, the pair will see another rise.

Problems in the labor market will undoubtedly make the Fed seriously consider the future policy of interest rates.

For long positions:

Buy euro when the price hits 1.1034 (green line on the chart) and then take-profit when the quote reaches the level of 1.1090. Growth will continue if there is weak US data. However, before buying, make sure that the MACD line is above zero and is starting to rise from it.

Euro can also be bought after the level of 1.0986 is tested twice, but the MACD line should be in the oversold area as only by that will the market reverse to 1.1034 and 1.1090.

For short positions:

Sell euro when the price reaches 1.0986 (red line on the chart) and take-profit at the level of 1.0945. Pressure will return if the US reports strong labor market indicators. However, before selling, make sure that the MACD line is below zero and is starting to drop down from it.

Euro can also be sold after the level of 1.1034 is tested twice, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0986 and 1.0945.

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.