FX.co ★ Analysis and trading tips for EUR/USD on April 2 (US session)

Analysis of transactions and trading tips on EUR/USD

No price tests occurred in the pair due to low market volatility. Nevertheless, euro rose after the release of manufacturing activity data of eurozone countries, even though the indicators did not report anything positive. According to it, activity continues to decrease, just at a slower pace. This will negatively affect GDP.

FOMC members will speak today, and their position may lead to a surge in volatility and a decline in dollar, especially if it turns out to be excessively dovish. Data on manufacturing orders will unlikely have a significant impact on the market.

For long positions:

Buy when euro hits 1.0755 (green line on the chart) and take profit at the price of 1.0798. Growth will occur after very poor statistics from the US.

When buying, ensure that the MACD line lies above zero or rises from it. Euro can also be bought after two consecutive price tests of 1.0735, but the MACD line should be in the oversold area, as only by that will the market reverse to 1.0755 and 1.0798.

For short positions:

Sell when euro reaches 1.0735 (red line on the chart) and take profit at the price of 1.0700. Pressure will return in the case of good statistics from the US and a firm position of Fed representatives.

When selling, make sure that the MACD line lies below zero or drops down from it. Euro can also be sold after two consecutive price tests of 1.0755, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0735 and 1.0700.

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.