10.02.202308:33 Forex Analysis & Reviews: Analysis and trading tips for EUR/USD on February 10

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, but it did not result in a large downward move. A third test in the afternoon showed that buying at 1.0759 only leads to losses as it was wrong to count on the fall of euro in the current conditions. No other signals appeared for the rest of the day.

Euro rose on Thursday due to the statements of ECB board member Joachim Nagel and a surprising jump in inflation in Germany. However, today there is nothing that could repeat or continue the momentum as Italy's industrial production report is of little interest to the market. There might be some reaction to the European Commission's economic outlook, but it is unlikely. In the afternoon, the US will release its data on consumer sentiment and inflation expectations, in which a rise in the figures will lead to the further strengthening of dollar. The speech of FOMC member Christopher Waller will also be in favor of the currency.

For long positions:

Buy euro when the quote reaches 1.0747 (green line on the chart) and take profit at the price of 1.0784. Growth could occur, but it is unlikely that the pair will go beyond the weekly high. 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 1.0717, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0747 and 1.0784.

For short positions:

Sell euro when the quote reaches 1.0717 (red line on the chart) and take profit at the price of 1.0685. 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 1.0747, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0717 and 1.0685.

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.