Analysis of transactions and tips for trading EUR/USD

On the first test of 1.0888, growth halted because the MACD line moved upward quite sharply from zero. On the second test, the MACD line remained within the overbought area, provoking a sell signal. However, the pair continued its rise, resulting in losses.

Dollar dipped despite the hawkish position of Fed Chairman Jerome Powell. Meanwhile, markets ignored the reports on Germany's external trade balance, as well as the retail sales data for the eurozone. Today, everything will depend on the ECB meeting. An unchanged stance will set off an increase in euro, while a soft stance could end the bullish trend, leading to a decline in the pair.

For long positions:

Buy when euro hits 1.0907 (green line on the chart) and take profit at the price of 1.0955. Growth could occur after the ECB meeting.

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 1.0886, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0907 and 1.0955.

For short positions:

Sell when euro reaches 1.0886 (red line on the chart) and take profit at the price of 1.0851. Pressure will increase in the case of unsuccessful bullish activity around the daily high and the ECB's soft stance on interest rates.

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 1.0907, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0886 and 1.0851.

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.