Analysis of transactions and tips for trading EUR/USD

The first test of 1.0759 occurred when the MACD line was already far from zero, so the upside potential was limited. But sometime later, there was another test, where the MACD line was in the overbought area and was gradually descending from there. This was a good entry point to sell, which brought about 40 pips of profit. In the afternoon, a test and signal to buy from 1.0723 emerged, taking about 15 pips off the market.

Italy's labor market report and France's retail sales data did not affect euro yesterday. However, by afternoon, there was a price decrease as the speeches from FOMC members were in favor of dollar.

Most likely, there will be a rebound today as Germany's CPI data may bring back demand for euro. But that will only happen if the figure signals that inflation has gone beyond the forecasts. The speech of ECB board member Joachim Nagel, who is known for his hawkish stance, may also provide support to euro.

In the afternoon, the US will release its weekly report on jobless claims, but it is unlikely to lead to significant market movements. Nevertheless, good figures could have a positive effect on dollar.

For long positions:

Buy euro when the quote reaches 1.0759 (green line on the chart) and take profit at the price of 1.0798. Growth could occur, but it is unlikely that the pair will break out of the sideways trend. Nevertheless, make sure that when buying, the MACD line is above zero or is starting to rise from it. Euro can also be bought at 1.0723, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0759 and 1.0798.

For short positions:

Sell euro when the quote reaches 1.0723 (red line on the chart) and take profit at the price of 1.0674. Pressure may return if statistics from the Euro area come out worse than forecasts. However, make sure that when selling, the MACD line is below zero or is starting to move down from it. Euro can also be sold at 1.0759, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0723 and 1.0674.

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.