Analysis of transactions and tips for trading EUR/USD

Further decline became limited because the test of 1.0843 occurred during the sharp drop of the MACD line from zero.

Even in the face of strong statistics from the US and the real estate market, where indicators surprised many, dollar did not receive the necessary support from major players, leading to position closures and an upward correction of the pair. Similarly, data on the business sentiment index for Germany and the eurozone, as well as the present situation index from the ZEW Institute, although turned out quite good, did not lead to a rise in euro. It seems that the market tried to rebalance ahead of today's FOMC meeting. But before that, data on Germany's producer prices and the eurozone's consumer confidence will come out, followed by a speech from ECB President Christine Lagarde. It will be very interesting to see the reactions to the recent inflation data in the eurozone. However, do not expect a strong rise or fall in euro.

For long positions:

Buy when euro hits 1.0874 (green line on the chart) and take profit at the price of 1.0903. Growth will occur after very good statistics from Germany and the eurozone, as well as strong comments from ECB representatives.

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 1.0857, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0874 and 1.0903.

For short positions:

Sell when euro reaches 1.0857 (red line on the chart) and take profit at the price of 1.0826. Pressure will increase in the case of unsuccessful bullish activity 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 1.0874, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0857 and 1.0826.

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.