Forex Analysis & Reviews: 29.10.2021 - Analysis and trading...

29.10.2021 09:12 AM

Analysis and trading recommendations for EUR/USD on October 29

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Analysis of transactions in the EUR / USD pair

There was a signal to buy in EUR/USD on Thursday, but the increase was limited even though the MACD line was moving up from zero. The same thing happened with the subsequent signal to sell. The decrease was little even though the MACD line was going down from zero. It was only after the ECB press conference that the pair moved significantly. At that time, the MACD line was moving up, so the signal to buy provoked long positions. This, in turn, led to a 40-pip rise in the pair. All in all, the upward movement exceeded 80 pips.

Euro rallied yesterday even though the ECB gave dovish statements. In addition, US reported weak GDP growth in the 3rd quarter, so demand for dollar decreased sharply.

This bullish momentum may continue today if reports on the Euro area exceed expectations. Due out later are Q3 GDP data and CPI on the EU, as well as retail sales in Germany. In the afternoon, reports on US income and expenditures will be published, followed by data on consumer sentiment. Weak figures will put even more pressure on dollar, which will accordingly lead to further increase in EUR/USD.

For long positions:

Open a long position when euro reaches 1.1678 (green line on the chart) and take profit at 1.1724. Strong EU data will help push the price up.

Before buying, make sure that the MACD line is above zero, or is starting to rise from it. It is also possible to buy at 1.1657, but the MACD line should be in the oversold area, as only by that will the market reverse to 1.1678 and 1.1724.

For short positions:

Open a short position when euro reaches 1.1657 (red line on the chart) and take profit at 1.1620. Weak GDP growth and slower inflationary pressures will put pressure on the pair.

Before selling, make sure that the MACD line is below zero, or is starting to move down from it. Euro could also be sold at 1.1678, but the MACD line should be in the overbought area, as only by that will the market reverse to 1.1657 and 1.1620.

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 decisions based on the current market situation is an inherently losing strategy for an intraday trader.

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*A análise de mercado aqui postada destina-se a aumentar o seu conhecimento, mas não dar instruções para fazer uma negociação.

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