Analysis and trading tips for EUR/USD on May 17 (US session)
May 17, 2023 1:23 pm
EUR/USD continued to fall as there are no more reasons for growth since inflation data in the euro area matched expectations. However, the test of 1.0848 coincided with the time that the MACD line was already far from zero, so the downside potential was limited.
Ahead are reports on the US housing market, particularly on the volume of building permits issued and the number of new foundations laid. Strong figures could lead to a surge in volatility, which will result in a rise in dollar and drop in euro.
For long positions:
Buy euro when the price hits 1.0847 (green line on the chart) and then take-profit when the quote reaches the level of 1.0873. Growth will continue if there is weak housing market data from the US. However, before buying, traders should 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 1.0826 is tested twice, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0847 and 1.0873.
For short positions:
Sell euro when the price reaches 1.0826 (red line on the chart) and take-profit at the level of 1.0793. Pressure will increase with good housing market data from the US. However, before selling, traders should 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 1.0847 is tested twice, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0826 and 1.0793.
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
EUR/USD continued to fall as there are no more reasons for growth since inflation data in the euro area matched expectations. However, the test of 1.0848 coincided with the time that the MACD line was already far from zero, so the downside potential was limited.
Ahead are reports on the US housing market, particularly on the volume of building permits issued and the number of new foundations laid. Strong figures could lead to a surge in volatility, which will result in a rise in dollar and drop in euro.
For long positions:
Buy euro when the price hits 1.0847 (green line on the chart) and then take-profit when the quote reaches the level of 1.0873. Growth will continue if there is weak housing market data from the US. However, before buying, traders should 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 1.0826 is tested twice, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0847 and 1.0873.
For short positions:
Sell euro when the price reaches 1.0826 (red line on the chart) and take-profit at the level of 1.0793. Pressure will increase with good housing market data from the US. However, before selling, traders should 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 1.0847 is tested twice, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0826 and 1.0793.
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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