FX.co ★ Analysis and trading tips for EUR/USD on February 19

Analysis of transactions and tips for trading EUR/USD

Further decline became limited because the test of 1.0741 occurred during the sharp fall of the MACD line from zero. Additionally, dollar demand dwindled, as weak real estate market statistics offset very strong data on US producer prices.

Nothing important will come out today besides the monthly report from the Bundesbank and speech of Burkhard Balz. A strong rise will unlikely be seen in euro, especially since high borrowing costs persist in the US and the Federal Reserve continues to take a wait-and-see position.

For long positions:

Buy when euro hits 1.0795 (green line on the chart) and take profit at the price of 1.0839. Growth will occur only after a confident breakthrough of the daily high, in continuation of the upward correction.

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 1.0773, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0795 and 1.0839.

For short positions:

Sell when euro reaches 1.0773 (red line on the chart) and take profit at the price of 1.0726. Pressure will increase in the case of very weak data from the Bundesbank and unsuccessful consolidation 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 1.0795, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0773 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.