26.01.202310:06 Forex Analysis & Reviews: Analysis and trading tips for EUR/USD on January 26

Analysis of transactions and tips for trading EUR/USD

Euro tested 1.0892 when the MACD line was just starting to move below zero, which was a pretty good signal to sell. It led to a price decrease of around 30 pips. Meanwhile, purchases from 1.0861 resulted in an increase of over 20 pips. No other signals appeared for the rest of the day.

There are no important statistics scheduled to be released this morning, so markets will most likely focus on the US data due out in the afternoon. These are the reports on orders for durable goods, foreign trade balance, and Q4 GDP change, which could prompt a rise in dollar demand provided that the figures are better than expected. Weekly jobless claims and new home sales data are also important as good readings will play in favor of USD.

For long positions:

Buy euro when the quote reaches 1.0933 (green line on the chart) and take profit at the price of 1.0969. However, the upcoming US GDP data may change the balance of power. Nevertheless, make sure that before buying, the MACD line is above zero or is starting to rise from it. Euro can also be bought at 1.0902, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0933 and 1.0969.

For short positions:

Sell euro when the quote reaches 1.0902 (red line on the chart) and take profit at the price of 1.0861. Pressure will return if GDP data in the US exceeds expectations. 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 1.0933, however, the MACD line should be in the overbought area, as only by that will the market reverse to 1.0902 and 1.0861.

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.