Analysis of transactions and tips for trading EUR/USD
Buyers may react positively to the leading report on Germany’s consumer climate index. However, short positions are more ideal as the upward potential of the pair will be limited after a failed attempt to update the monthly highs. Speeches of ECB representatives may increase demand for euro, but it will not be very large.
Ahead are key reports from the US, namely the change in the number of orders for durable goods and the balance of foreign trade. Good numbers will suppport dollar, which will return the market to seller’s side. This clearly means that traders should be cautious when buying EUR/USD or other risky assets.
For long positions:
Buy euro when the level of 1.1001 (green line on the chart) is reached and then take profit at the price of 1.1034. Growth will be seen if statistics from Germany exceed expectations. However, before buying, traders should make sure that the MACD line is above zero or is starting to rise from it. Euro can also be bought after two consecutive price tests of 1.0980, but the MACD line should be in the oversold area as only by that will the market reverse to 1.1001 and 1.1034.
For short positions:
Sell euro when the level of 1.0980 (red line on the chart) is reached and then take profit at the price of 1.0943. Pressure may return if there is no bullish activity in the morning. However, make sure that before selling, the MACD line is below zero or is starting to move down from it. Euro can also be sold after two consecutive price tests of 1.1001, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0980 and 1.0943.
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
Buyers may react positively to the leading report on Germany’s consumer climate index. However, short positions are more ideal as the upward potential of the pair will be limited after a failed attempt to update the monthly highs. Speeches of ECB representatives may increase demand for euro, but it will not be very large.
Ahead are key reports from the US, namely the change in the number of orders for durable goods and the balance of foreign trade. Good numbers will suppport dollar, which will return the market to seller’s side. This clearly means that traders should be cautious when buying EUR/USD or other risky assets.
For long positions:
Buy euro when the level of 1.1001 (green line on the chart) is reached and then take profit at the price of 1.1034. Growth will be seen if statistics from Germany exceed expectations. However, before buying, traders should make sure that the MACD line is above zero or is starting to rise from it. Euro can also be bought after two consecutive price tests of 1.0980, but the MACD line should be in the oversold area as only by that will the market reverse to 1.1001 and 1.1034.
For short positions:
Sell euro when the level of 1.0980 (red line on the chart) is reached and then take profit at the price of 1.0943. Pressure may return if there is no bullish activity in the morning. However, make sure that before selling, the MACD line is below zero or is starting to move down from it. Euro can also be sold after two consecutive price tests of 1.1001, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0980 and 1.0943.
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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