FX.co ★ Analysis and trading tips for EUR/USD on December 15

Analysis of transactions and tips for trading EUR/USD

The test of 1.0929 took place at a time when the MACD line moved upward from zero, provoking a buy signal. As a result, the pair rose in price by more than 60 pips.

The ECB's decision on interest rates led to further growth in EUR/USD, as the bank took a tough position, stating its intention to continue fighting inflation. This surprised many because the members seemed to be ready for more lenient conditions due to easing inflationary pressure in the region.

However, today, the situation may turn around as weak business activity data in the manufacturing and service sector of the eurozone may come out, spoiling the bullish sentiment of market players. Only an increase in the indicators or a less rapid contraction of activity will continue the rally in euro.

For long positions:

Buy when euro hits 1.1009 (green line on the chart) and take profit at the price of 1.1048. Growth will occur after good PMI 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 1.0982, but the MACD line should be in the oversold area as only by that will the market reverse to 1.1009 and 1.1048.

For short positions:

Sell when euro reaches 1.0982 (red line on the chart) and take profit at the price of 1.0942. Pressure will return amid weak indicators and lack of activity around the local 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 1.1009, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0982 and 1.0942.

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.