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Analysis of transactions and trading tips on EUR/USD
Further decline became limited because the test of 1.0776 occurred at a time when the MACD line descended quite sharply from zero. Sometime later, another test took place, but the MACD line already went in the oversold area, provoking a signal to buy. This resulted in a price increase of around 20 pips.
Retail sales data and industrial production reports from Germany put slight pressure on euro, but it did not lead to a new round of sell-offs. However, the upcoming labor market report from the ADP, particularly the data on private sector employees, could fuel the decline in the pair, provided that the figure indicates growth. If the numbers disappoint, buyers will have a chance for a correction.
For long positions:
Buy when euro hits 1.0803 (green line on the chart) and take profit at the price of 1.0846. Strong growth will occur only in the case of weak ADP data.
When buying, ensure that the MACD line lies above zero or rises from it. Euro can also be bought after two consecutive price tests of 1.0781, but the MACD line should be in the oversold area, as only by that will the market reverse to 1.0803 and 1.0846.
For short positions:
Sell when euro reaches 1.0781 (red line on the chart) and take profit at the price of 1.0740. Pressure will increase amid a strong labor market report indicating a healthy state of the US economy.
When selling, make sure that the MACD line lies below zero or drops down from it. Euro can also be sold after two consecutive price tests of 1.0803, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0781 and 1.0740.
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.
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.
