FX.co ★ Analysis and trading tips for EUR/USD on February 14

Analysis of transactions and tips for trading EUR/USD

The test of 1.0771 occurred during the drop of the MACD line from zero. This provoked a sell signal, which resulted in a price decrease of over 50 pips.

Weak data from the ZEW limited the upward potential, while US reports indicating that high inflation persisted in the region led to the massive sell-off of euro.

Several ECB representatives will speak today, and a soft stance will likely push euro to new lows. Data on GDP, employment, and industrial production in the eurozone will affect the market only if the numbers exceed expectations.

For long positions:

Buy when euro hits 1.0733 (green line on the chart) and take profit at the price of 1.0778. Growth will occur only with very positive statistics for the eurozone and a firm position of ECB representatives.

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 1.0709, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0733 and 1.0778.

For short positions:

Sell when euro reaches 1.0709 (red line on the chart) and take profit at the price of 1.0675. Pressure will increase amid very weak economic data.

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 1.0733, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0709 and 1.0675.

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.