FX.co ★ Analysis and trading tips for EUR/USD on April 8

Analysis of transactions and tips for trading EUR/USD

The test of 1.0822 occurred during the drop of the MACD line from zero. This, along with strong data from the US, provoked a sell signal that led to a price decrease of over 30 pips.

Poor data on industrial orders in France and Germany, as well as the report on retail sales in the eurozone, put pressure on euro last Friday. Then, strong data on the US labor market, which continues to demonstrate phenomenal resilience, led to a larger sell-off of risk assets, including euro. Today, the report on industrial production volume in Germany and trade balance will come out, followed by the data on investor confidence for the eurozone. The latter may help euro resume its rise, but only if the figures turn out better than expected.

For long positions:

Buy when euro hits 1.0849 (green line on the chart) and take profit at the price of 1.0903. Growth will occur after good data from the eurozone, but do not expect strong activity.

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 1.0903.

For short positions:

Sell when euro reaches 1.0822 (red line on the chart) and take profit at the price of 1.0770. 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 1.0770.

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.