FX.co ★ Analysis and trading tips for EUR/USD on March 22

Analysis of transactions and tips for trading EUR/USD

The test of 1.0897 occurred during the drop of the MACD line from zero. This provoked a sell signal, which resulted in a price decrease of 40 pips.

Weak PMI data for the eurozone led to a decline in the pair, which continued amid strong reports on the US real estate market. Disappointing figures on the business climate, present situation assessment, and economic expectations from the IFO will also extend the sell-off today. The speech of ECB board member Joachim Nagel and the Euro Summit will maintain good volatility in the market.

For long positions:

Buy when euro hits 1.0850 (green line on the chart) and take profit at the price of 1.0878. Growth will occur after very good statistics from Germany and the eurozone.

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 1.0828, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0850 and 1.0878.

For short positions:

Sell when euro reaches 1.0828 (red line on the chart) and take profit at the price of 1.0786. Pressure will increase in the case of unsuccessful bullish activity around the daily high and weak data from Germany.

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 1.0850, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0828 and 1.0786.

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.