FX.co ★ Analysis and trading tips for EUR/USD on September 8

Analysis of transactions and tips for trading EUR/USD

Further decline became limited because the test of 1.0702 on Thursday afternoon coincided with the sharp drop of the MACD line away from zero.

Euro fell due to the unexpected downward revision of the eurozone's GDP data, together with the better-than-expected figure on US jobless claims. The two led to EUR/USD hitting monthly lows, but sellers failed to maintain their advantage, so today, during the Asian session, the pair slightly recovered. The empty macroeconomic calendar today will give buyers the chance to work out a larger upward movement. The scale, however, may be limited by the ECB's indecision regarding monetary policy.

For long positions:

Buy when euro hits 1.0728 (green line on the chart) and take profit at the price of 1.0753. Growth will only be possible within the framework of an upward correction.

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 1.0713, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0728 and 1.0753.

For short positions:

Sell when euro reaches 1.0713 (red line on the chart) and take profit at the price of 1.0685. Pressure may return at any moment, continuing the bearish market observed throughout the week.

When selling, ensure that the MACD line lies below zero or drops down from it. Euro can also be sold after two consecutive price tests of 1.0728, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0713 and 1.0685.

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.