Analysis of transactions and tips for trading EUR/USD
Further growth became limited as the test of 1.1258, which happened in the afternoon, coincided with the sharp rise of the MACD line from zero. Another test took place shortly after, but during it the MACD line fell down from zero, prompting a sell signal that resulted in a price decrease of over 30 pips.
Very important inflation data for the eurozone will come out today, and it may trigger a breakout from the current highs if the number indicates high price pressure. Otherwise, euro will decline, especially if the core consumer price index disappoints.
For long positions:
Buy when euro hits 1.1243 (green line on the chart) and take profit at the price of 1.1279. Traders will continue to push the quote higher if price pressure remains.
However, when buying, the MACD line should be above zero or rising from it. Euro can also be bought after two consecutive price tests of 1.1220, but the MACD line should be in the oversold area as only by that will the market reverse to 1.1243 and 1.1279.
For short positions:
Sell when euro reaches 1.1220 (red line on the chart) and take profit at the price of 1.1178. Pressure will increase if inflation in the Euro area decreases, as that will allow the ECB to halt its rate hike cycle.
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 1.1243, but the MACD line should be in the overbought area as only by that will the market reverse to 1.1220 and 1.1178.
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
Further growth became limited as the test of 1.1258, which happened in the afternoon, coincided with the sharp rise of the MACD line from zero. Another test took place shortly after, but during it the MACD line fell down from zero, prompting a sell signal that resulted in a price decrease of over 30 pips.
Very important inflation data for the eurozone will come out today, and it may trigger a breakout from the current highs if the number indicates high price pressure. Otherwise, euro will decline, especially if the core consumer price index disappoints.
For long positions:
Buy when euro hits 1.1243 (green line on the chart) and take profit at the price of 1.1279. Traders will continue to push the quote higher if price pressure remains.
However, when buying, the MACD line should be above zero or rising from it. Euro can also be bought after two consecutive price tests of 1.1220, but the MACD line should be in the oversold area as only by that will the market reverse to 1.1243 and 1.1279.
For short positions:
Sell when euro reaches 1.1220 (red line on the chart) and take profit at the price of 1.1178. Pressure will increase if inflation in the Euro area decreases, as that will allow the ECB to halt its rate hike cycle.
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 1.1243, but the MACD line should be in the overbought area as only by that will the market reverse to 1.1220 and 1.1178.
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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