FX.co ★ Analysis and trading tips for EUR/USD on February 7

Analysis of transactions and tips for trading EUR/USD

Further growth became limited because the test of 1.0750 occurred during the strong upward move of the MACD line from zero.

Good data on industrial orders in Germany helped euro rise, albeit temporarily. The sharp contraction in retail sales in the eurozone also provoked a rally, as it could help the ECB achieve their inflation target more quickly.

If industrial production data in Germany also come out good or better than expected, euro will continue to rise. Similarly, positive figures on France's external trade balance will lead to the further strengthening of the pair. However, the trend remains downward, so any significant growth in euro will be perceived as an excellent opportunity to sell at attractive prices.

For long positions:

Buy when euro hits 1.0769 (green line on the chart) and take profit at the price of 1.0796. Growth will only be possible with very strong eurozone statistics.

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 1.0755, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0769 and 1.0796.

For short positions:

Sell when euro reaches 1.0755 (red line on the chart) and take profit at the price of 1.0726. 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 1.0769, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0755 and 1.0726.

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.