empty
 
 
You are about to leave
www.instaforex.eu >
a website operated by
INSTANT TRADING EU LTD
Open Account

02.02.202308:47 Forex Analysis & Reviews: Analysis and trading tips for EUR/USD on February 2

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

Analysis of transactions and tips for trading EUR/USD

Euro tested 1.0882 when the MACD line was already far from zero, so the upside potential was limited. No other signals appeared for the rest of the day.

Exchange Rates 02.02.2023 analysis

Upside potential in EUR/USD was limited by the decrease in the Euro area's CPI data as the figure could have a significant impact on today's monetary policy decisions of the ECB. Meanwhile, the 0.25% rate hike by the Fed allowed euro to continue its bull market in the afternoon.

Today, there is the ECB's interest rate decision, followed by a speech from ECB chief Christine Lagarde. If she maintains her previous hawkish stance, remaining firm on further interest rate hikes, demand for euro will surge. US data on jobless claims, manufacturing orders and labor costs are unlikely to have a significant impact on the market.

For long positions:

Buy euro when the quote reaches 1.1026 (green line on the chart) and take profit at the price of 1.1069. Growth could occur if the ECB announces another interest rate hike. However, make sure that when buying, the MACD line is above zero or is starting to rise from it. Euro can also be bought at 1.0982, but the MACD line should be in the oversold area as only by that will the market reverse to 1.1026 and 1.1069.

For short positions:

Sell euro when the quote reaches 1.0982 (red line on the chart) and take profit at the price of 1.0947. Pressure will increase if the ECB takes a dovish stance on monetary policy. 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 1.1026, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0982 and 1.0947.

Exchange Rates 02.02.2023 analysis

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
© 2007-2024

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.




You are now leaving www.instaforex.eu, a website operated by INSTANT TRADING EU LTD
Can't speak right now?
Ask your question in the chat.

Turn "Do Not Track" off