Analysis of transactions and tips for trading EUR/USD
Growth in EUR/USD was limited because the test of 1.0915 occurred when the MACD line was far above zero. However, after a short period of time, there was another test, during which the MACD line was already in the overbought area, giving off a signal to sell. This brought about 25 pips of profit.
The empty economic calendar led to a decline in the pair yesterday. However, it gradually recovered at the end of the Asian trading session today.
Data on investor confidence in the eurozone is due out today, but the report on retail sales is likely to be more interesting. The numbers, however, are for February, so do not expect a sharp spike in volatility.
There are also reports scheduled to be released in the US this afternoon, but the situation is unlikely to change as the NFIB Small Business Optimism report has little to do with the market. Much more interesting are the upcoming statements of FOMC members Austan Goolsbee and Patrick Harker, which may address the optimism of investors and more active inflation reduction. Those, to some extent, may affect demand for dollar.
For long positions:
Buy euro when the quote reaches 1.0898 (green line on the chart) and take profit at the price of 1.0937. Growth could occur today, thanks to yesterday’s upward surge and the return of risk appetite. But remember that before buying, make sure that the MACD line is above zero or is starting to rise from it. Euro can also be bought at 1.0881; however, the MACD line should be in the oversold area, as only by that will the market reverse to 1.0898 and 1.0937.
For short positions:
Sell euro when the quote reaches 1.0881 (red line on the chart) and take profit at the price of 1.0855. Pressure will return if the attempt to consolidate above the daily high fails. Also remember that before selling, make sure that the MACD line is under zero or is starting to move down from it. Euro can also be sold at 1.0898, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0881 and 1.0855.
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.
The material has been provided by InstaForex Company – www.instaforex.com
Analysis of transactions and tips for trading EUR/USD
Growth in EUR/USD was limited because the test of 1.0915 occurred when the MACD line was far above zero. However, after a short period of time, there was another test, during which the MACD line was already in the overbought area, giving off a signal to sell. This brought about 25 pips of profit.
The empty economic calendar led to a decline in the pair yesterday. However, it gradually recovered at the end of the Asian trading session today.
Data on investor confidence in the eurozone is due out today, but the report on retail sales is likely to be more interesting. The numbers, however, are for February, so do not expect a sharp spike in volatility.
There are also reports scheduled to be released in the US this afternoon, but the situation is unlikely to change as the NFIB Small Business Optimism report has little to do with the market. Much more interesting are the upcoming statements of FOMC members Austan Goolsbee and Patrick Harker, which may address the optimism of investors and more active inflation reduction. Those, to some extent, may affect demand for dollar.
For long positions:
Buy euro when the quote reaches 1.0898 (green line on the chart) and take profit at the price of 1.0937. Growth could occur today, thanks to yesterday’s upward surge and the return of risk appetite. But remember that before buying, make sure that the MACD line is above zero or is starting to rise from it. Euro can also be bought at 1.0881; however, the MACD line should be in the oversold area, as only by that will the market reverse to 1.0898 and 1.0937.
For short positions:
Sell euro when the quote reaches 1.0881 (red line on the chart) and take profit at the price of 1.0855. Pressure will return if the attempt to consolidate above the daily high fails. Also remember that before selling, make sure that the MACD line is under zero or is starting to move down from it. Euro can also be sold at 1.0898, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0881 and 1.0855.
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.
The material has been provided by InstaForex Company – www.instaforex.com
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