FX.co ★ Analysis and trading tips for EUR/USD on December 22

Analysis of transactions and tips for trading EUR/USD

The test of 1.0957, taking place at a time when the MACD line moved upward from zero, provoked a buy signal that resulted in a price increase of over 40 pips. Meanwhile, sales on the rebound from 1.0996 led to a 20-pip decline.

Disappointing US statistics and pace of economic growth in the third quarter put pressure on dollar, leading to a rise in the pair. Today, trading may remain within a sideways channel, largely due to the empty macroeconomic calendar and anticipation of important US data that will be released during the US session. Buyers may continue the attempts to break above the December high.

For long positions:

Buy when euro hits 1.1015 (green line on the chart) and take profit at the price of 1.1055. Growth will occur after a consolidation above the December high.

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 1.0981, but the MACD line should be in the oversold area as only by that will the market reverse to 1.1015 and 1.1055.

For short positions:

Sell when euro reaches 1.0981 (red line on the chart) and take profit at the price of 1.0939. Pressure will return if no bullish activity appears around the monthly 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 1.1015, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0981 and 1.0939.

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.