FX.co ★ Analysis and trading tips for EUR/USD on November 7 (US session)

Analysis of transactions and trading tips on EUR/USD

The test of 1.0693 took place when the MACD line moved sharply downward from zero. This, along with the conditions of a bullish market and significant demand for euro, limited the downward potential of the pair.

Eurozone's data on producer prices for September did not come as a surprise, as they coincided with economists' forecasts. This affected volatility and did not allow euro buyers to re-enter the market. In the afternoon, aside from a mediocre report on the US trade balance, members of the FOMC will speak, possibly regarding their own views on interest rates and the economy.

For long positions:

Buy when euro hits 1.0700 (green line on the chart) and take profit at the price of 1.0730. Growth will occur in line with the trend following the dovish statements from the Federal Reserve and weak labor market. 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 1.0681, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0700 and 1.0730.

For short positions:

Sell when euro reaches 1.0681 (red line on the chart) and take profit at the price of 1.0656. Pressure will increase in the case of prolonged buyer inactivity near the monthly high and strong comments from Fed representatives. 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 1.0700, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0681 and 1.0656.

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.