empty
20.01.2023 09:18 AM
Analysis and trading tips for EUR/USD on January 20

Analysis of transactions and tips for trading EUR/USD

Euro tested 1.0807 when the MACD line was just starting to move above zero, which was a good reason to buy. This resulted in a price increase of around 20 pips. No other signals appeared for the rest of the day.

This image is no longer relevant

Hawkish statements from ECB chief Christine Lagarde supported euro on Thursday because it focused on further interest rate hikes in the eurozone. Meanwhile, the ECB account balance data was ignored, but this was already expected.

Today, Germany's PPI data is due, followed by another speech from Lagarde. If these events do not lead to a rise in euro in the morning, expect a strong downward correction during the US session. A good reading on the US secondary housing market sales report will also strengthen dollar, as will hawkish remarks from FOMC members Patrick Harker and Christopher Waller.

For long positions:

Buy euro when the quote reaches 1.0841 (green line on the chart) and take profit at the price of 1.0880. Growth will occur if ECB chief Christine Lagarde give hawkish comments on monetary policy. Strong inflation data in Germany could also prompt a price increase. However, before buying, make sure that the MACD line is above zero or is starting to rise from it. Euro can also be bought at 1.0811, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0841 and 1.0880.

For short positions:

Sell euro when the quote reaches 1.0811 (red line on the chart) and take profit at the price of 1.0762. Pressure will return if the upcoming reports are weaker than expected and if the attempt to consolidate above 1.0850 fails. But take note that when selling, the MACD line should be below zero or is starting to move down from it. Euro can also be sold at 1.0841, however, the MACD line should be in the overbought area, as only by that will the market reverse to 1.0811 and 1.0762.

This image is no longer relevant

What's on the chart:

The thin green line is the key level at which you can place long positions in the EUR/USD pair.

The thick green line is the target price, since the quote is unlikely to move above this level.

The thin red line is the level at which you can place short positions in the EUR/USD pair.

The thick red line is the target price, since the quote is unlikely to move below this level.

MACD line - when entering the market, it is important to be guided by the overbought and oversold zones.

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.

Jakub Novak,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

USD/JPY: Simple Trading Tips for Beginner Traders for May 30th (U.S. Session)

Trade Analysis and Advice on Trading the Japanese Yen The designated levels were not tested in the first half of the day. We did not reach 144.17, and even

Jakub Novak 13:37 2025-05-30 UTC+2

GBPUSD: Simple Trading Tips for Beginner Traders for May 30th (U.S. Session)

Trade Analysis and Advice on Trading the British Pound The price test at 1.3461 during the first half of the day occurred when the MACD indicator had just started moving

Jakub Novak 13:35 2025-05-30 UTC+2

EUR/USD: Simple Trading Tips for Beginner Traders for May 30th (U.S. Session)

Trade Analysis and Advice on the Euro The price test at 1.1331 occurred when the MACD indicator had already moved significantly below the zero mark, limiting the pair's downward potential

Jakub Novak 13:33 2025-05-30 UTC+2

USD/JPY: Simple Trading Tips for Beginner Traders on May 30. Review of Yesterday's Forex Trades

The price test at 144.88 coincided with the moment when the MACD indicator had already moved significantly downward from the zero mark, limiting the pair's downside potential. For this reason

Jakub Novak 08:55 2025-05-30 UTC+2

GBP/USD: Simple Trading Tips for Beginner Traders on May 30. Review of Yesterday's Forex Trades

The price test at 1.3461 in the second half of the day coincided with the moment when the MACD indicator had already moved significantly downward from the zero line, which

Jakub Novak 08:55 2025-05-30 UTC+2

EUR/USD: Simple Trading Tips for Beginner Traders on May 30. Review of Yesterday's Forex Trades

The price test at 1.1306 coincided with the MACD indicator's just-starting upward movement from the zero mark, confirming the correct entry point for buying the euro and resulting

Jakub Novak 08:55 2025-05-30 UTC+2

Intraday Strategies for Beginner Traders on May 30

The euro, pound, and other risk assets, including the Japanese yen, rose sharply against the U.S. dollar, and there were objective reasons for this. A weak report on the growth

Miroslaw Bawulski 08:37 2025-05-30 UTC+2

USD/JPY: Simple Trading Tips for Beginner Traders – U.S. Session, May 29th

Trade Analysis and Guidance for Trading the Japanese Yen The price test at 145.64 coincided with the MACD indicator just beginning its downward movement from the zero line, confirming

Jakub Novak 20:03 2025-05-29 UTC+2

GBP/USD: Simple Trading Tips for Beginner Traders – U.S. Session, May 29th

Trade Analysis and Guidance for Trading the British Pound The price test at 1.3455 during the first half of the day occurred just as the MACD indicator began to rise

Jakub Novak 20:01 2025-05-29 UTC+2

EUR/USD: Simple Trading Tips for Beginner Traders – U.S. Session, May 29th

Trade Analysis and Tips for the Euro The price test at 1.1269 coincided with the MACD indicator beginning to rise from the zero line, confirming a valid market entry point

Jakub Novak 19:59 2025-05-29 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.