FX.co ★ Analysis and trading tips for EUR/USD on May 24 (US session)

The test of 1.0776 coincided with the time when the MACD line was far from zero, so the upside potential was limited. No other market signal appeared for the rest of the day.

Disappointing data from the IFO regarding Germany's business climate, present situation, and economic expectations led to a sell-off in EUR/USD. The downward momentum will continue if US Finance Minister Janet Yellen mentions again the approaching default in the US. The speech of FOMC member Christopher Waller and the Fed's minutes have little chance of impacting the market.

For long positions:

Buy euro when the price hits 1.0783 (green line on the chart) and then take-profit when the quote reaches the level of 1.0821. Growth is possible if there is positive news on the US debt limit. However, before buying, traders should 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 1.0755 is tested twice, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0783 and 1.0821.

For short positions:

Sell euro when the price reaches 1.0755 (red line on the chart) and take-profit at the level of 1.0720. Pressure will persist if there is no bullish activity around 1.0783 in the afternoon. However, before selling, traders should 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 1.0783 is tested twice, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0755 and 1.0720.

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.