FX.co ★ Analysis and trading tips for EUR/USD on June 23 (US session)

The test of 1.0916, coinciding with the significant decline of the MACD line from zero, limited the downward potential of the pair. Meanwhile, the swift drop and buying on the rebound from 1.0885 led to losses.

Weak PMI data in the eurozone reminded everyone that high interest rates and the economic slowdown will continue to limit the upside potential of the pair. Upcoming speech of FOMC members James Bullard and Raphael Bostic, which will undoubtedly discuss interest rates and inflation in the US, could lead to a new wave of sell-offs, especially if data on service, manufacturing, and composite PMI data in the US show some growth. The weekly lows may be even renewed, as volatility will remain high.

For long positions:

Buy when euro hits 1.0904 (green line on the chart) and take profit at the price of 1.0955. Growth may occur amid weak data from the US. However, before 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 1.0865, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0904 and 1.0955.

For short positions:

Sell when euro reaches 1.0865 (red line on the chart) and take profit at the price of 1.0828. Pressure will return in the case of strong ISM data. However, before 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 1.0904, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0865 and 1.0828.

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.