FX.co ★ Analysis and trading tips for EUR/USD on December 11

Analysis of transactions and tips for trading EUR/USD

The test of 1.0773, coinciding with the downward move of the MACD line from zero, provoked a sell signal that resulted in a price decrease of over 40 pips. Meanwhile, buying on the rebound from 1.0735 led to losses.

The market ignored Germany's CPI data and statements made at the meeting of Finance Ministers of the European Union, as the focus remained on the US employment data, particularly on the number of new jobs in the region. The report came out rather strong, leading to a decline in euro in the afternoon. However, buyers quickly took advantage of the situation, targeting another weekly low, which maintained balance in the market.

The empty macroeconomic calendar today will likely keep trading within a sideways channel.

For long positions:

Buy when euro hits 1.0781 (green line on the chart) and take profit at the price of 1.0812. Growth may occur, but it will not be very strong considering Friday's statistics.

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 1.0761, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0781 and 1.0812.

For short positions:

Sell when euro reaches 1.0761 (red line on the chart) and take profit at the price of 1.0739. Pressure will return in the case of a breakdown of the daily low. This will continue the bear market.

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 1.0781, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0761 and 1.0739.

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.