FX.co ★ Analysis and trading tips for EUR/USD on April 4

Analysis of transactions and tips for trading EUR/USD

The test of 1.0781 occurred during the rise of the MACD line from zero. This provoked a buy signal, which led to a price increase of 29 pips and the update of the target level of 1.0809.

News that the eurozone consumer price index and core prices had decreased much more than expected did not lead to a decline in euro, but weak data from the US, particularly the slowdown in activity growth in the service sector, triggered a major sell-off in dollar, resulting in the strengthening of the pair. Today, several statistics will come out, and weak indicators will likely pull down euro, which began to gain momentum despite the very real rate cuts by the European Central Bank earlier this year. The eurozone producer price index and the ECB report from the monetary policy meeting will also be in the focus of market players' attention.

For long positions:

Buy when euro hits 1.0849 (green line on the chart) and take profit at the price of 1.0890. Growth will occur if the reports show good activity growth in the service sector of eurozone countries.

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 1.0822, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0849 and 1.0890.

For short positions:

Sell when euro reaches 1.0822 (red line on the chart) and take profit at the price of 1.0789. Pressure will increase in the case of unsuccessful consolidation around 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 1.0849, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0822 and 1.0789.

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.