Analysis of transactions and tips for trading EUR/USD
The test of 1.1178 on Thursday afternoon, coinciding with the rise of the MACD line from zero and the latest US inflation data, prompted a buy signal that led to a price increase of over 50 pips. No other market signal appeared for the rest of the day.
The economic forecasts of the European Commission and the monetary policy meeting report of the ECB boosted euro in the morning, while the reduction in price pressure from US manufacturers hit dollar in the afternoon, extending the rise in EUR/USD.
Today, a number of important reports lie ahead, namely Germany’s wholesale price index, Italy’s trade balance, and the eurozone’s external trade balance. There will also be a meeting of the finance ministers of EU countries, but they may not continue the rally in euro, giving sellers an opportunity to seize the market.
For long positions:
Buy when euro hits 1.1237 (green line on the chart) and take profit at the price of 1.1296. Strong statistics from the eurozone will help the pair grow. However, traders should make sure that the MACD line lies above zero or rises from it.
Euro can also be bought after two consecutive price tests of 1.1191, but the MACD line should be in the oversold area as only by that will the market reverse to 1.1237 and 1.1296.
For short positions:
Sell when euro reaches 1.1191 (red line on the chart) and take profit at the price of 1.1133. Pressure will increase in the absence of bullish activity at the yearly highs. However, when selling, traders should 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 1.1237, but the MACD line should be in the overbought area as only by that will the market reverse to 1.1191 and 1.1133.
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
The test of 1.1178 on Thursday afternoon, coinciding with the rise of the MACD line from zero and the latest US inflation data, prompted a buy signal that led to a price increase of over 50 pips. No other market signal appeared for the rest of the day.
The economic forecasts of the European Commission and the monetary policy meeting report of the ECB boosted euro in the morning, while the reduction in price pressure from US manufacturers hit dollar in the afternoon, extending the rise in EUR/USD.
Today, a number of important reports lie ahead, namely Germany’s wholesale price index, Italy’s trade balance, and the eurozone’s external trade balance. There will also be a meeting of the finance ministers of EU countries, but they may not continue the rally in euro, giving sellers an opportunity to seize the market.
For long positions:
Buy when euro hits 1.1237 (green line on the chart) and take profit at the price of 1.1296. Strong statistics from the eurozone will help the pair grow. However, traders should make sure that the MACD line lies above zero or rises from it.
Euro can also be bought after two consecutive price tests of 1.1191, but the MACD line should be in the oversold area as only by that will the market reverse to 1.1237 and 1.1296.
For short positions:
Sell when euro reaches 1.1191 (red line on the chart) and take profit at the price of 1.1133. Pressure will increase in the absence of bullish activity at the yearly highs. However, when selling, traders should 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 1.1237, but the MACD line should be in the overbought area as only by that will the market reverse to 1.1191 and 1.1133.
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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