FX.co ★ Analysis and trading tips for EUR/USD on November 23

Analysis of transactions and tips for trading EUR/USD

The test of 1.0892, coinciding with the downward movement of the MACD line from zero, spurred a sell signal that led to a price decrease of around 40 pips. Meanwhile, purchases on the rebound from 1.0855 led to a 30-pip increase.

Markets ignored the report on the financial stability of the eurozone and the speech of ECB Executive Board member Frank Elderson. The strong US labor market data took all the attention, and it led to a new sell-off in EUR/USD, which may intensify in the event of weak figures on service, manufacturing and composite business activity indices in the eurozone. Pressure may also surge if the ECB minutes hint at the end of the interest rate hike cycle. Statements from ECB Executive Board member Isabel Schnabel may also affect the market's direction.

For long positions:

Buy when euro hits 1.0918 (green line on the chart) and take profit at the price of 1.0952. Growth will occur after good PMI datad from 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 1.0901, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0918 and 1.0952.

For short positions:

Sell when euro reaches 1.0901 (red line on the chart) and take profit at the price of 1.0865. Pressure will increase in the case of very poor statistics indicating a slowdown in activity growth in 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 1.0918, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0901 and 1.0865.

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.