EUR/USD: simple trading tips for novice traders on April 21. Analysis of yesterday trades
April 21, 2023 11:53 am
Analysis of positions and tips for trading EUR
A test of 1.0980 occurred at a time when the MACD indicator climbed significantly from the zero level. Given that the pair was trading in the sideways channel, I did not open long positions. After a short period of time, another test of this level took place. At that moment, the MACD was already in the overbought area, which led to the implementation of scenario No. 2 for short positions. The pair declined by about 20 pips.
Market reaction to Germany’s Producer Price Index as well as the ECB meeting minutes was rather muted. US initial jobless claims and existing home sales reports led to a surge in volatility. However, there was no clear trajectory. Today, in the morning, I would advise you to pay attention to the reports on the Eurozone Manufacturing, Services, and Composite PMI Indices. Weak data will certainly increase pressure on the euro, which may trigger the implementation of scenario No. 1 for short positions. In the afternoon, the United States will unveil the same reports, which may cause a trend reversal. The speech of Lisa D. Cook will not be of great importance as many Fed policymakers have already spoken in favor of new rate hikes this week.
Buy signal
Scenario No.1: today, we could buy EUR if the price reaches 1.0975 plotted by the green line on the chart with the target at 1.1009. I would recommend leaving the market at 1.1009 and then selling the euro in the opposite direction, bearing in mind a 30-35-pip downward move from the market entry point. The pair is likely to rise only if Eurozone PMI data is positive. Important! Before opening long positions, make sure that MACD is above the zero mark and it has just started to climb from it.
Scenario No.2: it is also possible to buy the euro after two consecutive tests of 1.0955. At this moment, the MACD indicator should be in the oversold area. It could limit the downward potential of the pair. It may also trigger an upward reversal of the market. The pair is expected to grow to the opposite levels of 1.0975 and 1.1009.
Sell signal
Scenario No.1: we could sell the euro if the price hits 1.0955 plotted by the red line on the chart. The target level is located at 1.0921 where I recommend leaving the market and buying the euro in the opposite direction, bearing in mind a 20-25-pip upward move. The pressure on the pair could rerun only due to negative economic reports. Important! Before opening short positions, make sure that MACD is below the zero line and it has just started to decline from it.
Scenario No.2: it is also possible to sell the euro today after two consecutive tests of 1.0975. At this moment, the MACD indicator should be in the overbought area, which will limit the upward potential of the pair. It could also lead to a downward reversal of the market. The pair is projected to slide down to the opposite levels of 1.0955 and 1.0921.
What’s on the chart
The thin green line is the key level at which you can place long positions on the EUR/USD pair.
The thick green line is the target price as the pair is unlikely to rise above this level.
The thin red line is the level at which you can place short positions on the EUR/USD pair.
The thick red line is the target price as the pair is unlikely to decline below this level.
MACD line. When entering the market, it is important to pay attention to the overbought and oversold zones before making trading decisions.
Important: Novice traders need to be very careful when making decisions about entering the market. Before the release of important reports, it is better to stay out of the market to avoid losses due to sharp fluctuations. If you decide to trade during the news release, always place Stop Loss orders to minimize losses. Without placing Stop Loss orders, you can lose your entire deposit very quickly, especially if you do not use money management and trade large volumes.
Remember that for successful trading, you need to have a clear trading plan. Spontaneous trading decisions based on the current market situation will inevitably lead to losses for an intraday trader.
The material has been provided by InstaForex Company – www.instaforex.com
Analysis of positions and tips for trading EUR
A test of 1.0980 occurred at a time when the MACD indicator climbed significantly from the zero level. Given that the pair was trading in the sideways channel, I did not open long positions. After a short period of time, another test of this level took place. At that moment, the MACD was already in the overbought area, which led to the implementation of scenario No. 2 for short positions. The pair declined by about 20 pips.
Market reaction to Germany’s Producer Price Index as well as the ECB meeting minutes was rather muted. US initial jobless claims and existing home sales reports led to a surge in volatility. However, there was no clear trajectory. Today, in the morning, I would advise you to pay attention to the reports on the Eurozone Manufacturing, Services, and Composite PMI Indices. Weak data will certainly increase pressure on the euro, which may trigger the implementation of scenario No. 1 for short positions. In the afternoon, the United States will unveil the same reports, which may cause a trend reversal. The speech of Lisa D. Cook will not be of great importance as many Fed policymakers have already spoken in favor of new rate hikes this week.
Buy signal
Scenario No.1: today, we could buy EUR if the price reaches 1.0975 plotted by the green line on the chart with the target at 1.1009. I would recommend leaving the market at 1.1009 and then selling the euro in the opposite direction, bearing in mind a 30-35-pip downward move from the market entry point. The pair is likely to rise only if Eurozone PMI data is positive. Important! Before opening long positions, make sure that MACD is above the zero mark and it has just started to climb from it.
Scenario No.2: it is also possible to buy the euro after two consecutive tests of 1.0955. At this moment, the MACD indicator should be in the oversold area. It could limit the downward potential of the pair. It may also trigger an upward reversal of the market. The pair is expected to grow to the opposite levels of 1.0975 and 1.1009.
Sell signal
Scenario No.1: we could sell the euro if the price hits 1.0955 plotted by the red line on the chart. The target level is located at 1.0921 where I recommend leaving the market and buying the euro in the opposite direction, bearing in mind a 20-25-pip upward move. The pressure on the pair could rerun only due to negative economic reports. Important! Before opening short positions, make sure that MACD is below the zero line and it has just started to decline from it.
Scenario No.2: it is also possible to sell the euro today after two consecutive tests of 1.0975. At this moment, the MACD indicator should be in the overbought area, which will limit the upward potential of the pair. It could also lead to a downward reversal of the market. The pair is projected to slide down to the opposite levels of 1.0955 and 1.0921.
What’s on the chart
The thin green line is the key level at which you can place long positions on the EUR/USD pair.
The thick green line is the target price as the pair is unlikely to rise above this level.
The thin red line is the level at which you can place short positions on the EUR/USD pair.
The thick red line is the target price as the pair is unlikely to decline below this level.
MACD line. When entering the market, it is important to pay attention to the overbought and oversold zones before making trading decisions.
Important: Novice traders need to be very careful when making decisions about entering the market. Before the release of important reports, it is better to stay out of the market to avoid losses due to sharp fluctuations. If you decide to trade during the news release, always place Stop Loss orders to minimize losses. Without placing Stop Loss orders, you can lose your entire deposit very quickly, especially if you do not use money management and trade large volumes.
Remember that for successful trading, you need to have a clear trading plan. Spontaneous trading decisions based on the current market situation will inevitably lead to losses for an intraday trader.
The material has been provided by InstaForex Company – www.instaforex.com
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