Analysis and trading tips for EUR/USD on October 18 (US session)
October 18, 2023 11:25 am
Analysis of transactions and trading tips on EUR/USD
The test of 1.0570 earlier in the day took place when the MACD line moved downward from zero, prompting a signal to sell. This resulted in a price decrease of about 15 pips.
Further decline in EUR/USD can be expected, especially after data indicating a decrease in price pressure in the eurozone. However, during the US session, there will be statements from FOMC members John Williams, Michelle Bowman, and Patrick Harker. Their dovish tone may limit the downward potential of the pair, allowing buyers to halt the downward trend formed in the morning. As for statistics, data on issued building permits lies ahead, followed by the report on new foundation layings in the US. Weak indicators will deter dollar demand, which will also affect the direction of the pair.
For long positions:
Buy when euro hits 1.0587 (green line on the chart) and take profit at the price of 1.0620. Growth will occur in the event of a decrease in the US construction sector and dovish statements from Fed representatives. 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 1.0544, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0587 and 1.0620.
For short positions:
Sell when euro reaches 1.0544 (red line on the chart) and take profit at the price of 1.0508. 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 1.0587, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0544 and 1.0508.
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 1.0570 earlier in the day took place when the MACD line moved downward from zero, prompting a signal to sell. This resulted in a price decrease of about 15 pips.
Further decline in EUR/USD can be expected, especially after data indicating a decrease in price pressure in the eurozone. However, during the US session, there will be statements from FOMC members John Williams, Michelle Bowman, and Patrick Harker. Their dovish tone may limit the downward potential of the pair, allowing buyers to halt the downward trend formed in the morning. As for statistics, data on issued building permits lies ahead, followed by the report on new foundation layings in the US. Weak indicators will deter dollar demand, which will also affect the direction of the pair.
For long positions:
Buy when euro hits 1.0587 (green line on the chart) and take profit at the price of 1.0620. Growth will occur in the event of a decrease in the US construction sector and dovish statements from Fed representatives. 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 1.0544, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0587 and 1.0620.
For short positions:
Sell when euro reaches 1.0544 (red line on the chart) and take profit at the price of 1.0508. 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 1.0587, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0544 and 1.0508.
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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