29.05.202308:59 Forex Analysis & Reviews: Analysis and trading tips for EUR/USD on May 29

Analysis of transactions and tips for trading EUR/USD

The price test of 1.0744 coincided with the time that the MACD line moved up from zero. However, instead of a large increase, pressure returned after the pair rose by only 10 pips.

Euro fell on Friday as latest data in the US indicated another growth in the PCE index. Figures on income and expenses also inclined market players to look at dollar. The empty economic calendar will let markets put their focus on the news about the US debt ceiling.

For long positions:

Buy euro when the level of 1.0747 (green line on the chart) is reached and then take profit at the price of 1.0775. Growth could occur amid positive news. However, before buying, traders should make sure that the MACD line is above zero or is starting to rise from it. Euro can also be bought after two consecutive price tests of 1.0729, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0747 and 1.0775.

For short positions:

Sell euro when the level of 1.0729 (red line on the chart) is reached and then take profit at the price of 1.0695. Pressure is unlikely to return today, But traders could still sell as long as the MACD line is below zero or is starting to move down from it. Euro can also be sold after two consecutive price tests of 1.0747. However, the MACD line should be in the overbought area as only by that will the market reverse to 1.0729 and 1.0695.

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.