FX.co ★ Analysis and trading tips for EUR/USD on July 10

Analysis of transactions and tips for trading EUR/USD

Following the weak labor market report in the US, the test of 1.0904 on Friday afternoon, coinciding with the rise of the MACD line from zero, prompted a buy signal that led to a price increase of over 50 pips.

Data on France's foreign trade balance and Italy's retail sales report dealt no impact on euro, but the weak employment report in the US non-agricultural sector led to a sharp rise in EUR/USD due to the sharp decline of dollar demand. This momentum may extend up to today, as a speech by ECB board member Joachim Nagel lies ahead, which may mention further tough stance on interest rates. Growth will not be very large though considering the empty macroeconomic calendar.

For long positions:

Buy when euro hits 1.0960 (green line on the chart) and take profit at the price of 1.0990. Only hawkish comments from ECB representatives will trigger growth in the pair.

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 1.0941, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0960 and 1.0990.

For short positions:

Sell when euro reaches 1.0941 (red line on the chart) and take profit at the price of 1.0917. Pressure will increase if buyers do not react to statements made by ECB representatives.

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 1.0960, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0941 and 1.0917.

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.