FX.co ★ Analysis and trading tips for EUR/USD on November 7

Analysis of transactions and tips for trading EUR/USD

Further decline became limited because the test of 1.0733 coincided with the sharp downward move of the MACD line from zero. Pressure certainly increased after Fed representative Neel Kashkari said nobody at the central bank considers a complete halt to the interest rate hike program, let alone a rate cut. To add to this, data on the Eurozone PMI came out weak, prompting a decline in euro demand.

There will be reports on Germany's industrial production and the eurozone's producer price index today, but if no sharp drop occurs in the pair, then it means that buyers have re-entered the market.

For long positions:

Buy when euro hits 1.0712 (green line on the chart) and take profit at the price of 1.0745. Growth will occur after protecting the significant support at 1.0693. However, when buying, make sure that the MACD line lies above zero or rises from it.

Euro can also be bought after two consecutive price tests of 1.0693, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0712 and 1.0745.

For short positions:

Sell when euro reaches 1.0693 (red line on the chart) and take profit at the price of 1.0666. Pressure will increase after breaking through 1.0693. However, when selling, make sure that the MACD line lies under zero or drops down from it.

Euro can also be sold after two consecutive price tests of 1.0712, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0693 and 1.0666.

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.