27.01.202210:00 Forex-elemzések és áttekintések: Analysis and trading tips for EUR/USD on January 27

Analysis of transactions in the EUR / USD pair

A signal to sell emerged after EUR/USD hit 1.1205. Coincidentally, the MACD line was below zero, so the pair dropped more than 20 pips. No other signal appeared for the rest of the day.

Data on US foreign trade balance, wholesale inventories and home sales came out as expected, so market volatility was not serious yesterday. However, the stance of the Fed towards interest rates remained unchanged, so pressure returned on risky assets. That led to another dip of EUR/USD.

But since there are no statistics to be released on the eurozone today, it is possible that after hitting the local low, bears will step aside and take a wait-and-see attitude until the US releases new reports on its economy. A strong 4th quarter GDP will prompt higher demand for dollar, which will push EUR/USD down. Data on durable goods orders and jobless claims will have little effect on the market.

For long positions:

Buy euro when the quote reaches 1.1230 (green line on the chart) and take profit at the price of 1.1256. A rally is possible, but only in the morning because a strong US GDP data may come out during the US session. If that happens, pressure will return on the pair.

Before buying, make sure that the MACD line is above zero, or is starting to rise from it. It is also possible to buy at 1.1209, but the MACD line should be in the oversold area, as only by that will the market reverse to 1.1230 and 1.1256.

For short positions:

Sell euro when the quote reaches 1.1209 (red line on the chart) and take profit at the price of 1.1180. Lack of bullish activity will lead to a decline in the pair.

Before selling, make sure that the MACD line is below zero, or is starting to move down from it. Euro could also be sold at 1.1230, however, the MACD line should be in the overbought area, as only by that will the market reverse to 1.1209 and 1.1180.

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 decisions based on the current market situation is an inherently losing strategy for an intraday trader.