FX.co ★ Analysis and trading tips for EUR/USD on November 17

Analysis of transactions and tips for trading EUR/USD

The test of 1.0861 occurred when the MACD line moved upward from zero, prompting a signal to buy. This resulted in a price increase of over 30 pips.

Italy's foreign trade balance and speech of ECB President Christine Lagarde kept euro in an upward trend, which continued thanks to the weak data on the US labor market and a sharp contraction in industrial production. Because of this, euro reached a monthly high.

Today, inflation data from the eurozone will come out, followed by speeches from ECB President Christine Lagarde and Executive Board member Joachim Nagel. High inflation will likely lead to a further rise in euro and another test of the monthly high. However, it may not stabilize at that level.

For long positions:

Buy when euro hits 1.0861 (green line on the chart) and take profit at the price of 1.0900. Growth will occur after hawkish statements from Lagarde and inflation spike in the eurozone.

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 1.0842, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0861 and 1.0900.

For short positions:

Sell when euro reaches 1.0842 (red line on the chart) and take profit at the price of 1.0815. Pressure will increase after an unsuccessful attempt to consolidate at the daily high and weak economic data from the eurozone.

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 1.0861, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0842 and 1.0815.

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.