FX.co ★ Analysis and trading tips for EUR/USD on August 11

Analysis of transactions and tips for trading EUR/USD

Further growth became limited as the test of 1.1042 on Thursday afternoon coincided with the sharp rise of the MACD line from zero. US inflation data also came out mixed.

CPI data from Italy did not affect the market's direction, unlike the report on price pressure in the US. Prices rising below forecasts led to a surge in euro, but then pressure returned. Today, buyers will certainly try to re-enter the market, and for this, CPI data from France and Spain must come out decent or better than expected. However, upcoming data in the US may turn the tide during the US session.

For long positions:

Buy when euro hits 1.1010 (green line on the chart) and take profit at the price of 1.1046. Growth may be seen in the morning. However, when buying, traders must 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 1.0984, but the MACD line should be in the oversold area as only by that will the market reverse to 1.1010 and 1.1046.

For short positions:

Sell when euro reaches 1.0984 (red line on the chart) and take profit at the price of 1.0951. Pressure will increase in case of a failure to renew daily highs. However, when selling, traders must ensure that the MACD line lies below zero or drops down from it.

Euro can also be sold after two consecutive price tests of 1.1010, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0984 and 1.0951.

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.