FX.co ★ Analysis and trading tips for EUR/USD on June 15

Analysis of transactions and tips for trading EUR/USD

The test of 1.0815 on Wednesday afternoon, coinciding with the rise of the MACD line from zero, triggered a buy signal which, together with the anticipation of a pause in the Fed's rate hike cycle, led to more than 50-pip price increase in the pair.

Although the industrial production report for the Eurozone did not affect euro's direction, the news of potential rate increases in the succeeding months reduced risk appetite, leading to a sharp decline in EUR/USD. However, the situation may turn around today, as ECB President Christine Lagarde may discuss the continuation of policy tightening throughout the summer. Euro may not necessarily hit a new weekly high, but if Lagarde's statements take on a more hawkish tone, long positions will surge.

For long positions:

Buy when euro hits 1.0825 (green line on the chart) and take profit at the price of 1.0861. Growth could continue after hawkish statements from the ECB. However, when buying, traders should make sure that the MACD line lies above zero or rises from it. Euro can also be bought after two consecutive price tests of 1.0798, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0825 and 1.0861.

For short positions:

Sell when euro reaches 1.0798 (red line on the chart) and take profit at the price of 1.0767. Pressure may return after the ECB meeting. However, when selling, traders should make sure that the MACD line lies below zero or drops down from it. Euro can also be sold after two consecutive price tests of 1.0825, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0798 and 1.0767.

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.