FX.co ★ Analysis and trading tips for EUR/USD on December 1

Analysis of transactions and tips for trading EUR/USD

Further growth became limited because the test of 1.0940 took place when the MACD line moved upward quite sharply from zero. No other market signal appeared for the rest of the day.

Euro declined in price because the latest CPI data from the eurozone indicated a decrease in inflation, which will likely convince the ECB to abandon high interest rates as early as next year. As for today, there will be equally important reports, and they may intensify the pressure on the pair, especially if the business activity data in the manufacturing sector of Eurozone countries turns out to be weaker than expected. But if the data does not disappoint, the pair may undergo an upward correction. The speech of ECB President Christine Lagarde will not have a significant impact on market direction.

For long positions:

Buy when euro hits 1.0922 (green line on the chart) and take profit at the price of 1.0976. Growth will occur as a small correction at the end of the week, especially after good data 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 1.0889, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0922 and 1.0976.

For short positions:

Sell when euro reaches 1.0889 (red line on the chart) and take profit at the price of 1.0840. Pressure will return in the case of 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 1.0922, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0889 and 1.0840.

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.