Analysis and trading tips for EUR/USD on October 18
October 18, 2023 8:23 am
Analysis of transactions and tips for trading EUR/USD
The test of 1.0565 took place when the MACD line moved upward from zero, prompting a signal to buy. This resulted in a price increase of around 30 pips, but did not reach the target resistance level.
Business sentiment data from the ZEW Institute for Germany and the eurozone exceeded expectations, while retail sales in the US continued to decline, albeit better than analysts’ predictions. All of this put pressure on dollar and supported euro. As for today, there will be a report on consumer prices for the eurozone, especially on the core prices. Its growth could lead to a sharp rise in euro. The speech of ECB President Christine Lagarde will also be a factor in market volatility.
For long positions:
Buy when euro hits 1.0593 (green line on the chart) and take profit at the price of 1.0636. Growth will occur, but it will depend significantly on inflation. High inflation will force the ECB to raise rates, leading to a rise in euro.
When buying, the MACD line should be above zero or rising from it. Euro can also be bought after two consecutive price tests of 1.0570, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0593 and 1.0636.
For short positions:
Sell when euro reaches 1.0570 (red line on the chart) and take profit at the price of 1.0536. Pressure may return at any moment, especially if inflation in the eurozone decreases sharply.
When selling, the MACD line should be below zero or dropping down from it. Euro can also be sold after two consecutive price tests of 1.0593, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0570 and 1.0536.
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 1.0565 took place when the MACD line moved upward from zero, prompting a signal to buy. This resulted in a price increase of around 30 pips, but did not reach the target resistance level.
Business sentiment data from the ZEW Institute for Germany and the eurozone exceeded expectations, while retail sales in the US continued to decline, albeit better than analysts’ predictions. All of this put pressure on dollar and supported euro. As for today, there will be a report on consumer prices for the eurozone, especially on the core prices. Its growth could lead to a sharp rise in euro. The speech of ECB President Christine Lagarde will also be a factor in market volatility.
For long positions:
Buy when euro hits 1.0593 (green line on the chart) and take profit at the price of 1.0636. Growth will occur, but it will depend significantly on inflation. High inflation will force the ECB to raise rates, leading to a rise in euro.
When buying, the MACD line should be above zero or rising from it. Euro can also be bought after two consecutive price tests of 1.0570, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0593 and 1.0636.
For short positions:
Sell when euro reaches 1.0570 (red line on the chart) and take profit at the price of 1.0536. Pressure may return at any moment, especially if inflation in the eurozone decreases sharply.
When selling, the MACD line should be below zero or dropping down from it. Euro can also be sold after two consecutive price tests of 1.0593, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0570 and 1.0536.
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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