FX.co ★ Analysis and trading tips for EUR/USD on July 4

Analysis of transactions and tips for trading EUR/USD

Further growth became limited, as the test of 1.0915 on Monday afternoon coincided with the significant drop of the MACD line from zero. A 10-pip decline followed, after which the pair returned to 1.0915. No other market signal appeared for the rest of the day.

Euro halted its decline yesterday after the US reported weak data on manufacturing activity. As for today, markets will be closed in the afternoon due to the Independence Day celebrations in the US. Trading activity will also be limited.

For long positions:

Buy when euro hits 1.0915 (green line on the chart) and take profit at the price of 1.0939. However, do not expect the pair to exceed the channel today.

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 1.0888, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0915 and 1.0939.

For short positions:

Sell when euro reaches 1.0888 (red line on the chart) and take profit at the price of 1.0861. Pressure will not be very serious today.

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 1.0915, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0888 and 1.0861.

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.