FX.co ★ Analysis and trading tips for EUR/USD on February 2

Analysis of transactions and tips for trading EUR/USD

The test of 1.0820 occurred during the upward move of the MACD line from zero. This provoked a buy signal, which resulted in a price increase of over 35 pips.

EUR/USD fell during the European session due to mixed CPI data from the eurozone. However, very poor labor market statistics and an increase in initial jobless claims led to a sell-off of dollar in the afternoon, resulting in a rise in the pair.

Today, buyers have every chance of continuing the upward trend, because nothing important will come out from the eurozone besides the industrial production data in France. Weak employment data in the US will also fuel the increase in the pair.

For long positions:

Buy when euro hits 1.0885 (green line on the chart) and take profit at the price of 1.0925. Growth will occur in line with the upward trend.

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 1.0859, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0885 and 1.0925.

For short positions:

Sell when euro reaches 1.0859 (red line on the chart) and take profit at the price of 1.0823. Pressure on the pair will increase amid very weak macroeconomic statistics and an unsuccessful attempt to consolidate at the daily 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 1.0885, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0859 and 1.0823.

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.