FX.co ★ Analysis and trading tips for EUR/USD on September 26

Analysis of transactions and tips for trading EUR/USD

The test of 1.0628 on Monday afternoon, coinciding with the decline of the MACD line from zero, prompted a sell signal that led to a price decrease of over 50 pips. Meanwhile, buying on the rebound from 1.0582 resulted in a gain of around 15 pips.

Weak IFO data on the business climate, present situation, and economic expectations for Germany, together with the statements of ECB President Christine Lagarde regarding interest rates remaining high for a considerable period of time, led to further sell-offs of EUR/USD. Considering that today only has a speech from ECB Board member Philip Lane, a strong upward correction will be unlikely in the pair.

For long positions:

Buy when euro hits 1.0595 (green line on the chart) and take profit at the price of 1.0637. Growth may occur, but it will only be a small upward correction within a bearish market.

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 1.0571, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0595 and 1.0637.

For short positions:

Sell when euro reaches 1.0571 (red line on the chart) and take profit at the price of 1.0517. Pressure may return at any moment, especially in such a bearish market.

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 1.0595, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0571 and 1.0517.

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.