FX.co ★ Analysis and trading tips for EUR/USD on August 11 (US session)

Analysis of transactions and trading tips on EUR/USD

Further decline became limited as the test of 1.0951 happened when the MACD line fell sharply from zero. But this afternoon, the pair will move depending on the data on price pressure in the US. If the July report shows another slowdown in price growth, demand for euro will increase, as this will influence the future decisions of the Federal Reserve. If inflation rises above expectations, pressure on euro will return, as uncertainty about the Fed's future policy will limit the pair's upward potential. Consumer sentiment and inflation expectations may also influence the market, in which a sharp increase in the former and a decrease in the latter will lead to continued purchases of dollar, resulting in a new decline in EUR/USD.

For long positions:

Buy when euro hits 1.1004 (green line on the chart) and take profit at the price of 1.1046. Growth will occur in the event of a rapid drop in US inflation. 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 1.0969, but the MACD line should be in the oversold area as only by that will the market reverse to 1.1004 and 1.1046.

For short positions:

Sell when euro reaches 1.0969 (red line on the chart) and take profit at the price of 1.0915. Pressure will increase in the case of a sharp price jump in 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 1.1004, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0969 and 1.0915.

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.