FX.co ★ Analysis and trading tips for EUR/USD on January 11 (US session)

Analysis of transactions and trading tips on EUR/USD

Further decline became limited because the test of 1.0941 took place during the sharp downward move of the MACD line from zero.

Although euro fell slightly despite the empty macroeconomic calendar, the upcoming US inflation data will put everything in its place. A sharp increase in the figure will likely lead to a rise in dollar and a fall in euro, which will give a new impetus to the development of the bear market observed since the beginning of this year. However, if prices continue to decrease, the Fed will have even fewer arguments not to lower rates in March, which could provoke a sharp rise in euro and a breakout from the sideways channel.

For long positions:

Buy when euro hits 1.0995 (green line on the chart) and take profit at the price of 1.1043. Growth may occur after soft inflation data from the US.

When buying, ensure that the MACD line lies above zero or rises from it. Euro can also be bought after two consecutive price tests of 1.0963, but the MACD line should be in the oversold area, as only by that will the market reverse to 1.0995 and 1.1043.

For short positions:

Sell when euro reaches 1.0963 (red line on the chart) and take profit at the price of 1.0914. Pressure will increase in the case of strong data on the growth of price pressure in the US.

When selling, make sure that the MACD line lies below zero or drops down from it. Euro can also be sold after two consecutive price tests of 1.0995, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0963 and 1.0914.

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.