Analysis and trading tips for EUR/USD on August 7 (US session)
August 7, 2023 11:23 am
Buyers remained inactive this morning as the pair tested 1.0986 when the MACD line hung below zero.
The released statistics for the eurozone did not help euro rally, so pressure returned after some time. Most likely, this decline will continue in the afternoon, following the speeches of several Fed representatives. Since many expect the persistence of price pressure, the central bank may continue its tight policy in September, which plays in favor of dollar.
For long positions:
Buy when euro hits 1.0986 (green line on the chart) and take profit at the price of 1.1035. Growth will occur only amid dovish statements from Fed representatives.
When buying, ensure that the MACD line lies above zero or rises from it. Euro can also be bought after two consecutive price tests of 1.0955, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0986 and 1.1035.
For short positions:
Sell when euro reaches 1.0955 (red line on the chart) and take profit at the price of 1.0919. Pressure may increase at any moment, especially after the speeches of Fed representatives. However, when selling, make sure that the MACD line lies below zero or drops down from it.
Euro can also be sold after two consecutive price tests of 1.0986, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0955 and 1.0919.
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
Buyers remained inactive this morning as the pair tested 1.0986 when the MACD line hung below zero.
The released statistics for the eurozone did not help euro rally, so pressure returned after some time. Most likely, this decline will continue in the afternoon, following the speeches of several Fed representatives. Since many expect the persistence of price pressure, the central bank may continue its tight policy in September, which plays in favor of dollar.
For long positions:
Buy when euro hits 1.0986 (green line on the chart) and take profit at the price of 1.1035. Growth will occur only amid dovish statements from Fed representatives.
When buying, ensure that the MACD line lies above zero or rises from it. Euro can also be bought after two consecutive price tests of 1.0955, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0986 and 1.1035.
For short positions:
Sell when euro reaches 1.0955 (red line on the chart) and take profit at the price of 1.0919. Pressure may increase at any moment, especially after the speeches of Fed representatives. However, when selling, make sure that the MACD line lies below zero or drops down from it.
Euro can also be sold after two consecutive price tests of 1.0986, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0955 and 1.0919.
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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