Analysis of transactions and tips for trading EUR/USD

The test of 1.0585 occurred when the MACD line was already far from zero, so the downside potential was limited. Sometime later, another test took place, but this time the MACD line had just started to move down from zero, which was a good signal to sell. This resulted in the pair falling by more than 35 pips. Buying on a rebound from 1.0548 did not result in a strong upward correction.

GDP data and the leading consumer climate index from Germany disappointed traders, which led to the fall of EUR/USD on Friday morning. Then, a jump in US PCE and household spending strengthened dollar, resulting in a further decline in the pair. T

Today is going to be a quieter day despite the reports on consumer confidence, private sector lending and M3 money supply. Of those, hardly anything major is likely to affect euro, but the speech of ECB's board member Philip Lane may lead to an upward correction in the pair. Long-term inventory change and outstanding home sales from the US are coming out in the afternoon, which will again play in dollar's favor as stronger statistics will prompt the Fed to keep raising rates. The speech of FOMC member Philip Jefferson is unlikely to lead to a strong surge in volatility.

For long positions:

Buy euro when the quote reaches 1.0551 (green line on the chart) and take profit at the price of 1.0592. Growth could occur, but it will only be an upward correction at the beginning of this week. Nevertheless, make sure that when buying, the MACD line is above zero or is starting to rise from it. Euro can also be bought at 1.0528, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0551 and 1.0592.

For short positions:

Sell euro when the quote reaches 1.0528 (red line on the chart) and take profit at the price of 1.0490. Pressure may persist in the morning. However, make sure that when selling, the MACD line is below zero or is starting to move down from it. Euro can also be sold at 1.0551, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0528 and 1.0490.

What's on the chart:

The thin green line is the key level at which you can place long positions in the EUR/USD pair.

The thick green line is the target price, since the quote is unlikely to move above this level.

The thin red line is the level at which you can place short positions in the EUR/USD pair.

The thick red line is the target price, since the quote is unlikely to move below this level.

MACD line - when entering the market, it is important to be guided by the overbought and oversold zones.

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.