Analysis and trading tips for EUR/USD on October 17 (US session)
October 17, 2023 12:23 pm
Analysis of transactions and trading tips on EUR/USD
The test of 1.0552 earlier in the day took place when the MACD line moved upward from zero, prompting a signal to buy. However, no strong price increase occurred, resulting in losses.
Fairly good data from the ZEW for Germany and the eurozone helped euro return to the area of daily highs. However, it seems that there will be a decrease today upon the release of the US retail sales report and statements from Fed representatives. An increase in the indicator will likely fuel dollar demand, which will result in the pair’s drop to yesterday’s lows. But if the data disappoints, the pair will rise to new local highs. Statements from FOMC members John Williams and Michelle Bowman will also carry weight in the market.
For long positions:
Buy when euro hits 1.0565 (green line on the chart) and take profit at the price of 1.0603. Growth will occur in the event of a sharp slowdown in US retail sales. However, 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 1.0540, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0565 and 1.0603.
For short positions:
Sell when euro reaches 1.0540 (red line on the chart) and take profit at the price of 1.0499. Pressure will return in the case of strong US statistics and firm statements from the Fed. 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 1.0565, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0540 and 1.0499.
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 trading tips on EUR/USD
The test of 1.0552 earlier in the day took place when the MACD line moved upward from zero, prompting a signal to buy. However, no strong price increase occurred, resulting in losses.
Fairly good data from the ZEW for Germany and the eurozone helped euro return to the area of daily highs. However, it seems that there will be a decrease today upon the release of the US retail sales report and statements from Fed representatives. An increase in the indicator will likely fuel dollar demand, which will result in the pair’s drop to yesterday’s lows. But if the data disappoints, the pair will rise to new local highs. Statements from FOMC members John Williams and Michelle Bowman will also carry weight in the market.
For long positions:
Buy when euro hits 1.0565 (green line on the chart) and take profit at the price of 1.0603. Growth will occur in the event of a sharp slowdown in US retail sales. However, 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 1.0540, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0565 and 1.0603.
For short positions:
Sell when euro reaches 1.0540 (red line on the chart) and take profit at the price of 1.0499. Pressure will return in the case of strong US statistics and firm statements from the Fed. 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 1.0565, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0540 and 1.0499.
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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