FX.co ★ Analysis and trading tips for EUR/USD on August 25 (US session)

Analysis of transactions and trading tips on EUR/USD

The test of 1.0782 earlier in the day coincided with the decline of the MACD line from zero. This prompted a sell signal that led to a price decrease of about 10 pips. Pressure eased shortly after.

In the afternoon, data on inflation expectations and consumer sentiment from the University of Michigan will be released, but they will not have much impact on the market, as all attention will be placed on the statements from central bank representatives. If Fed Chairman Jerome Powell takes a firm stance despite all signs of a slowdown, another drop in EUR/USD will be seen. The situation will change only if Powell announces that the Fed no longer plans to raise interest rates.

For long positions:

Buy when euro hits 1.0819 (green line on the chart) and take profit at the price of 1.0874. Growth will occur after dovish statements from Powell. 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 1.0790, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0819 and 1.0874.

For short positions:

Sell when euro reaches 1.0790 (red line on the chart) and take profit at the price of 1.0747. Pressure will increase amid a hawkish stance from the Federal Reserve. 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 1.0819, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0790 and 1.0747.

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.