FX.co ★ Analysis and trading tips for EUR/USD on November 22

Analysis of transactions and tips for trading EUR/USD

The test of 1.0941 took place when the MACD line moved downward from zero, spurring a sell signal. As a result, the pair fell in price by over 40 pips.

Markets ignored the remarks of ECB President Christine Lagarde even though she noted progress in reducing inflation. The Fed minutes took all the attention, and after its release traders found nothing indicating the end of the rate hike cycle nor a reduction in the coming year. This led to renewed pressure on the pair, which caused a downward correction

Today, there will be a report on the financial stability of the eurozone, followed by a speech from ECB Executive Board member Frank Elderson. The market may be affected by their outcome.

For long positions:

Buy when euro hits 1.0925 (green line on the chart) and take profit at the price of 1.0964. Growth will occur as long as traders protect the daily low and the eurozone releases a good stability report.

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 1.0896, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0925 and 1.0964.

For short positions:

Sell when euro reaches 1.0896 (red line on the chart) and take profit at the price of 1.0855 Pressure will increase after an unsuccessful attempt to consolidate at the daily high.

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 1.0925, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0896 and 1.0855.

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.