Analysis of transactions and tips for trading EUR/USD
There was a price test of 1.1001. However, the MACD line was quite far from zero at that time, so the upward potential was limited. Selling after a rise to 1.1034 also led to losses, as there was no market reversal. No other signals appeared for the rest of the day.
Euro rose on Wednesday due to good growth data on Germany’s consumer climate index. Then, demand persisted during the US session, after the House of Representatives passed a bill to raise the US public debt limit by 1.5 trillion euros. Further price increase is possible today as ahead is a report on the eurozone’s consumer confidence. There is also a speech from ECB Board member Fabio Panetta, which may play on the side of buyers. But a lot still depends on key US statistics, such as the change in GDP volume for Q1 2023. Data on weekly jobless claims and the change in the volume of pending home sales will be of little interest.
For long positions:
Buy euro when the level of 1.1075 (green line on the chart) is reached and then take profit at the price of 1.1115. Growth will be seen if there are good eurozone statistics and poor US GDP data. 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 1.1044, but the MACD line should be in the oversold area as only by that will the market reverse to 1.1075 and 1.1115.
For short positions:
Sell euro when the level of 1.1044 (red line on the chart) is reached and then take profit at the price of 1.1008. Pressure may return if the upcoming US GDP data exceeds expectations. 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 1.1075, but the MACD line should be in the overbought area as only by that will the market reverse to 1.1044 and 1.1008.
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
There was a price test of 1.1001. However, the MACD line was quite far from zero at that time, so the upward potential was limited. Selling after a rise to 1.1034 also led to losses, as there was no market reversal. No other signals appeared for the rest of the day.
Euro rose on Wednesday due to good growth data on Germany’s consumer climate index. Then, demand persisted during the US session, after the House of Representatives passed a bill to raise the US public debt limit by 1.5 trillion euros. Further price increase is possible today as ahead is a report on the eurozone’s consumer confidence. There is also a speech from ECB Board member Fabio Panetta, which may play on the side of buyers. But a lot still depends on key US statistics, such as the change in GDP volume for Q1 2023. Data on weekly jobless claims and the change in the volume of pending home sales will be of little interest.
For long positions:
Buy euro when the level of 1.1075 (green line on the chart) is reached and then take profit at the price of 1.1115. Growth will be seen if there are good eurozone statistics and poor US GDP data. 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 1.1044, but the MACD line should be in the oversold area as only by that will the market reverse to 1.1075 and 1.1115.
For short positions:
Sell euro when the level of 1.1044 (red line on the chart) is reached and then take profit at the price of 1.1008. Pressure may return if the upcoming US GDP data exceeds expectations. 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 1.1075, but the MACD line should be in the overbought area as only by that will the market reverse to 1.1044 and 1.1008.
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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