FX.co ★ Analysis and trading tips for EUR/USD on October 11

Analysis of transactions and tips for trading EUR/USD

The test of 1.0599, coinciding with the rise of the MACD line from zero, prompted a buy signal that led to a price increase of around 20 pips.

Italy's data on industrial production did not generate much interest, unlike the speech of ECB President Christine Lagarde. Although she did not say much about monetary policy, she made it clear that the ECB will continue to actively combat inflation, which partially hampered euro's bullish potential. Today, apart from Germany's CPI report, nothing important will happen in the eurozone, so buyers will have a good chance of working further EUR/USD growth. However, they should be careful at the current highs, as pressure may return at any moment, leading to an active sell-off of the pair.

For long positions:

Buy when euro hits 1.0615 (green line on the chart) and take profit at the price of 1.0645. Growth will occur in continuation of the upward correction, but be cautious when buying at the current highs.

When buying, the MACD line should be above zero or rising from it. Euro can also be bought after two consecutive price tests of 1.0592, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0615 and 1.0645.

For short positions:

Sell when euro reaches 1.0592 (red line on the chart) and take profit at the price of 1.0560. Pressure will return after an unsuccessful attempt to stay at weekly highs, as the pair's bullish potential diminishes.

When selling, the MACD line should be below zero or dropping down from it. Euro can also be sold after two consecutive price tests of 1.0615, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0592 and 1.0560.

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.