FX.co ★ Analysis and trading tips for EUR/USD on September 6

Analysis of transactions and tips for trading EUR/USD

Further decline became limited because the test of 1.0742, which occurred on Tuesday afternoon, coincided with the sharp drop of the MACD line away from zero.

The downward revisions in the eurozone's PMI and PPI data triggered a sell-off in euro, which may extend today if the retail sales report comes out weaker than forecasts. Sellers will likely attempt to reach new monthly lows, unless the data turns out to be better. In that case, euro will rally.

For long positions:

Buy when euro hits 1.0745 (green line on the chart) and take profit at the price of 1.0770. Growth may occur after good eurozone indicators and update of the monthly lows. However, when buying, ensure that the MACD line lies above zero or just starts to rise from it.

Euro can also be bought after two consecutive price tests of 1.0729, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0745 and 1.0770.

For short positions:

Sell when euro reaches 1.0729(red line on the chart) and take profit at the price of 1.0706. Pressure will persist in the event of poor eurozone data indicating growing economic problems. 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 1.0745, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0729 and 1.0706.

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.