FX.co ★ Analysis and trading tips for EUR/USD on September 19 (US session)

Analysis of transactions and trading tips on EUR/USD

The test of 1.0688 earlier in the day occurred when the MACD line just began to move up from zero, prompting a signal to buy. It rose by around 20 pips at the time of writing this article, and will likely continue to do so during the US session

Demand for euro soared as recent reports indicated a slowdown in core prices. It dropped to an annual rate of 5.2%, lower than the 5.3% mentioned in the preliminary report at the end of August. Poor figures on the upcoming data for issued building permits and number of new housing starts in the US may also weaken dollar's position, leading to further growth of the pair. But if the data exceeds expectations, pressure on EUR/USD may return, especially considering the current state of the US economy.

For long positions:

Buy when euro hits 1.0715 (green line on the chart) and take profit at the price of 1.0760. Growth will occur after weak data from the US and further upward correction of the pair. 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 1.0685, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0715 and 1.0760.

For short positions:

Sell when euro reaches 1.0685 (red line on the chart) and take profit at the price of 1.0640. Pressure will increase in the event of strong US data and inactivity of buyers at the daily highs. 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 1.0715, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0685 and 1.0640.

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.