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

Analysis of transactions and tips for trading EUR/USD

Further decline became limited because the test of 1.0956 took place at a time when the MACD line moved downward quite sharply from zero. No other market signal appeared for the rest of the day.

CPI data from France and Spain, together with the speech of ECB Board member Philip Lane, maintained demand for euro before the release of producer price report from the US, which did not affect market sentiment much, as the monthly figure decreased, while the yearly figure increased. Today, Germany's wholesale price data will come out, followed by reports on industrial production and external trade balance in the eurozone. Nothing depends on these reports, so markets can ignore them.

For long positions:

Buy when euro hits 1.0986 (green line on the chart) and take profit at the price of 1.1015. Growth will occur, but it will be within a sideways channel, as the pair has little chance of breaking out of its limits today.

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 1.0959, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0986 and 1.1015.

For short positions:

Sell when euro reaches 1.0959 (red line on the chart) and take profit at the price of 1.0925. Pressure will return in the case of unsuccessful bullish activity near Friday's 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 1.0986, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0959 and 1.0925.

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.