FX.co ★ Analysis and trading tips for EUR/USD on August 16 (US session)

Analysis of transactions and trading tips on EUR/USD

Further growth became limited as the first test of 1.0925 in the morning coincided with the sharp rise of the MACD line from zero. The second test, on the other hand, gave a sell signal, but at the time of writing the article, the pair moved down by just 8 pips.

Quite important reports lie ahead, such as the volume of building permits issued and the number of new foundations laid in the US. The change in industrial production volume will also come out, but this may negatively impact dollar demand.

With regards to the upcoming Fed minutes, a hawkish stance by the central bank and expectations of rate hikes will lead to a fall in EUR/USD, whereas an emphasis by Fed representatives on a more dovish stance in the future will strengthen euro's position and lead to the pair's growth.

For long positions:

Buy when euro hits 1.0935 (green line on the chart) and take profit at the price of 1.0981. Growth will occur amidst bad US data and a dovish FOMC statement. 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 1.0906, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0935 and 1.0981.

For short positions:

Sell when euro reaches 1.0906 (red line on the chart) and take profit at the price of 1.0860. Pressure will increase in the event of good US report and hawkish FOMC protocol. 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 1.0935, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0906 and 1.0860.

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.