FX.co ★ Analysis and trading tips for EUR/USD on January 9

Analysis of transactions and tips for trading EUR/USD

Further growth became limited because the first test of 1.0955 happened during the sharp upward move of the MACD line from zero. As for the second test, it occurred when the MACD line went within the overbought area, provoking a sell signal. However, no price decrease took place, resulting in losses.

Although euro fell under pressure due to weak data on Germany's industrial orders and trade balance, the price recovered in the afternoon because the dovish tone of Fed member Raphael Bostic negatively affected dollar demand. Euro may resume its decline if the upcoming data on Germany's industrial output also turns out to be poor. The unemployment rate in the eurozone may not have much impact on the market.

For long positions:

Buy when euro hits 1.0962 (green line on the chart) and take profit at the price of 1.0989. Growth will occur in continuation of yesterday's upward trend, but breaking out of the sideways channel may be quite difficult.

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 1.0944, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0962 and 1.0989.

For short positions:

Sell when euro reaches 1.0944 (red line on the chart) and take profit at the price of 1.0916. Pressure will return in the case of weak data and no bullish activity around the daily high, as well as another batch of weak data from Germany.

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 1.0962, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0944 and 1.0916.

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.