FX.co ★ Analysis and trading tips for EUR/USD on July 27 (US session)

The test of 1.1108, coinciding with the rise of the MACD line from zero, led to a price increase of over 30 pips. Meanwhile, selling on the rebound from 1.1141 brought about a 15-pip decline. Trading stabilized shortly after the movement.

The ECB's decision on interest rates lies ahead, followed by statements of ECB President Christine Lagarde. A wait-and-see approach, also based on new data, could weaken demand for euro, leading to a decline in EUR/USD. But if Lagarde firmly states a further rate hike, euro could rise, even despite the MACD indicator's readings.

For long positions:

Buy when euro hits 1.1153 (green line on the chart) and take profit at the price of 1.1224. Growth will occur amid a a firm stance by the ECB. However, when buying, ensure that the MACD line lies above zero or rises from it.

Euro can also be bought after two consecutive price tests of 1.1122, but the MACD line should be in the oversold area as only by that will the market reverse to 1.1153 and 1.1224.

For short positions:

Sell when euro reaches 1.1122 (red line on the chart) and take profit at the price of 1.1061. Pressure may increase in the case of a softer policy by the ECB and good GDP figures from the US. However, when selling, 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 1.1153, but the MACD line should be in the overbought area as only by that will the market reverse to 1.1122 and 1.1061.

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.