FX.co ★ Analysis and trading tips for EUR/USD on August 4 (US session)

No price test occurred in the pair this morning, and market players ignored the reports released in the eurozone.

But this afternoon, data on the US labor market will come out, and it may lead to a decline in EUR/USD provided that the numbers exceed expectations. The pair will grow only when the data disappoints. Traders can also ignore the readings of the MACD indicator.

For long positions:

Buy when euro hits 1.0961 (green line on the chart) and take profit at the price of 1.1017. Growth will occur amid very weak data on the US labor market. 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 1.0939, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0961 and 1.1015.

For short positions:

Sell when euro reaches 1.0939 (red line on the chart) and take profit at the price of 1.0887. Pressure may increase at any moment, especially in the case of good US labor market figures. 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 1.0961, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0939 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.