Analysis and trading tips for EUR/USD on May 15 (US session)
May 15, 2023 11:24 am
Euro rallied briefly as the economic forecast for the eurozone was revised upwards. However, on the first test of 1.0875, the MACD line was already far from zero, so there was not much price movement. It was on the second test that traders managed to bring euro down by about 20 pips.
The Empire Manufacturing index is set to come out in the afternoon. However, more interesting are the speeches of FOMC members Raphael Bostic and Neel Kashkari as they may comment on the topic of interest rate hikes and problems due to the debt ceiling. That will certainly bring back pressure on euro and lead to another fall in EUR/USD. Negotiations over the US debt ceiling are scheduled for tomorrow, so do not expect to see growth on risky assets.
For long positions:
Buy euro when the price hits 1.0882 (green line on the chart) and then take-profit when the quote reaches the level of 1.0915. Growth will continue if there is positive news about resolving the US national debt problem. However, before buying, make sure that the MACD line is above zero and is starting to rise from it.
Euro can also be bought after the level of 1.0854 is tested twice, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0882 and 1.0915.
For short positions:
Sell euro when the price reaches 1.0854 (red line on the chart) and take-profit at the level of 1.0817. Pressure will increase with the aggravation of problems and hawkish statements from Fed representatives. However, before selling, make sure that the MACD line is below zero and is starting to drop down from it.
Euro can also be sold after the level of 1.0882 is tested twice, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0854 and 1.0817.
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
Euro rallied briefly as the economic forecast for the eurozone was revised upwards. However, on the first test of 1.0875, the MACD line was already far from zero, so there was not much price movement. It was on the second test that traders managed to bring euro down by about 20 pips.
The Empire Manufacturing index is set to come out in the afternoon. However, more interesting are the speeches of FOMC members Raphael Bostic and Neel Kashkari as they may comment on the topic of interest rate hikes and problems due to the debt ceiling. That will certainly bring back pressure on euro and lead to another fall in EUR/USD. Negotiations over the US debt ceiling are scheduled for tomorrow, so do not expect to see growth on risky assets.
For long positions:
Buy euro when the price hits 1.0882 (green line on the chart) and then take-profit when the quote reaches the level of 1.0915. Growth will continue if there is positive news about resolving the US national debt problem. However, before buying, make sure that the MACD line is above zero and is starting to rise from it.
Euro can also be bought after the level of 1.0854 is tested twice, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0882 and 1.0915.
For short positions:
Sell euro when the price reaches 1.0854 (red line on the chart) and take-profit at the level of 1.0817. Pressure will increase with the aggravation of problems and hawkish statements from Fed representatives. However, before selling, make sure that the MACD line is below zero and is starting to drop down from it.
Euro can also be sold after the level of 1.0882 is tested twice, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0854 and 1.0817.
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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