FX.co ★ Analysis and trading tips for EUR/USD on September 20 (US session)

Analysis of transactions and trading tips on EUR/USD

The test of 1.0680 earlier in the day occurred when the MACD line just began to decline from zero, prompting a signal to sell. However, a downward movement did not happen, leading to losses.

Statements from ECB members kept euro afloat despite the low market volatility ahead of the Fed meeting and amid an empty macroeconomic calendar. But the situation may change in the afternoon, as an upward revision of inflation forecasts will lead to a decline. Only an unchanged forecast, together with the same Fed policy and statement of Fed Chairman Jerome Powell expressing satisfaction with the pace of inflation reduction, will result in the pair's rise.

For long positions:

Buy when euro hits 1.0714 (green line on the chart) and take profit at the price of 1.0774. Growth will occur if the Federal Reserve takes a dovish position and keeps rates unchanged. 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 1.0688, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0714 and 1.0774.

For short positions:

Sell when euro reaches 1.0688 (red line on the chart) and take profit at the price of 1.0625. Pressure will increase in the event of a hawkish stance from the Federal Reserve and commitment to further combat inflation. 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 1.0714, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0688 and 1.0625.

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.