FX.co ★ Analysis and trading tips for EUR/USD on December 6

Analysis of transactions and tips for trading EUR/USD

The test of 1.0810 took place when the MACD line moved downward from zero, prompting a signal to sell. This, along with an upward revision of the US service sector activity, led to a price decrease of over 30 pips.

Positive composite PMI report from the eurozone helped euro trade upwards in the morning, but strong US statistics and a soft tone from ECB representatives provoked another sell-off in the afternoon. Most likely, the upcoming data on industrial orders in Germany and retail sales in the eurozone will recover risk appetite, especially if the figures indicate an increase. The growth will undoubtedly affect the economy positively, strengthening euro's positions. However, the speech of ECB Executive Board member Joachim Nagel could cause a decline.

For long positions:

Buy when euro hits 1.0803 (green line on the chart) and take profit at the price of 1.0839. Growth will occur after maintaining weekly lows due to good statistics for 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 1.0776, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0803 and 1.0839.

For short positions:

Sell when euro reaches 1.0776 (red line on the chart) and take profit at the price of 1.0740. Pressure will return in the case of weak data for the eurozone and a soft tone from ECB representatives.

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 1.0803, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0776 and 1.0740.

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.