FX.co ★ Analysis and trading tips for EUR/USD on August 8 (US session)

Further decline became limited as the test of 1.0978 happened when the MACD line moved far down from zero. Sometime later, another test occurred, but this time it prompted a buy signal that led to a price increase of around 10 pips. Pressure returned immediately after that movement.

Upcoming speeches of Fed representatives may ease pressure on EUR/USD. Data on small business optimism and trade balance may also affect its direction, in which any growth in the latter will lower demand for dollar, leading to a rise in the pair.

For long positions:

Buy when euro hits 1.0965 (green line on the chart) and take profit at the price of 1.1008. Growth will occur only amid dovish statements from Fed representatives. 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 1.0942 but the MACD line should be in the oversold area as only by that will the market reverse to 1.0965 and 1.1008.

For short positions:

Sell when euro reaches 1.0942 (red line on the chart) and take profit at the price of 1.0906. Pressure may continue, especially after the speeches of Fed representatives. 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 1.0965, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0942 and 1.0906.

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.