FX.co ★ Analysis and trading tips for EUR/USD on August 3

Analysis of transactions and tips for trading EUR/USD

The test of 1.0963 on Wednesday afternoon, coinciding with the decline of the MACD line from zero, prompted a sell signal that led to a price decrease of around 40 pips. Meanwhile, purchases from 1.0929 yielded a price increase of about 25 pips.

Strong labor market data from ADP led to another sell-off in EUR/USD, which may continue today, as PMI data of the eurozone may come out quite weak. PPI data in the eurozone will not have much impact on the market's direction.

For long positions:

Buy when euro hits 1.0952 (green line on the chart) and take profit at the price of 1.0944. Bullish traders will return to the market in the event of very good reports from the service sector of eurozone countries. However, before buying, ensure that the MACD line lies above zero or just starting to rise from it.

Euro can also be bought after two consecutive price tests of 1.0926, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0952 and 1.0994.

For short positions:

Sell when euro reaches 1.0926 (red line on the chart) and take profit at the price of 1.0887. Pressure will intensify amid downward revision of PMI data. However, before selling, ensure that the MACD line lies below zero or drops down from it.

Euro can also be sold after two consecutive price tests of 1.0952, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0926 and 1.0887.

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.