Analysis of transactions and tips for trading EUR/USD

The test of 1.0537 took place when the MACD line moved upward from zero, prompting a signal to buy. However, no strong price increase occurred in the pair.

CPI data from Italy and trade balance of the eurozone went unnoticed by traders, while soft statements from Fed representatives led to the strengthening of the pair. Today, there will be reports on business sentiment index from the ZEW Institute for the eurozone and Germany, as well as speeches by ECB Vice President Luis de Guindos and ECB Executive Board member Joachim Nagel. Similar rhetoric as before will certainly not boost optimism among buyers.

For long positions:

Buy when euro hits 1.0552 (green line on the chart) and take profit at the price of 1.0580. Growth will occur, but the upward potential will be limited by strong resistance and the upper boundary of the sideways channel around 1.0560.

When buying, the MACD line should be above zero or rising from it. Euro can also be bought after two consecutive price tests of 1.0529, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0552 and 1.0580.

For short positions:

Sell when euro reaches 1.0529 (red line on the chart) and take profit at the price of 1.0500. Pressure may return at any moment since the pair remains stuck in a sideways channel, and the chances of a decline seem much higher than those of an increase.

When selling, the MACD line should be below zero or dropping down from it. Euro can also be sold after two consecutive price tests of 1.0552, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0529 and 1.0499.

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.