11.11.202110:37 Forex Analysis & Reviews: Analysis and trading tips for EUR/USD on November 11

Analysis of transactions in the EUR / USD pair

There was a signal to sell in the morning, but the decrease was limited because the MACD line was far from zero. Then, in the afternoon, the indicator moved below zero, which allowed traders to safely take short positions. This provoked a 30-pip decrease in the pair.

EUR / USD fell yesterday because the CPI data in Germany and industrial output in Italy coincided with the forecasts of economists. At the same time US CPI skyrocketed, which increased demand for dollar.

Today it is necessary to pay attention to the economic bulletin from the European Central Bank, but more important will be the economic forecast from the European Commission. If the outline shows tougher inflationary pressures in the future, demand for euro will rise. In the afternoon volatility may decrease because Veterans Day is celebrated in the US. But pressure on risky assets will continue, so it is better to bet on the strengthening of dollar.

For long positions:

Buy euro when the quote reaches 1.1491 (green line on the chart) and take profit at the price of 1.1535. Growth will be observed if the European Commission reports strong economic forecasts.

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 1.1468, but the MACD line should be in the oversold area, as only by that will the market reverse to 1.1491 and 1.1535.

For short positions:

Sell euro when the quote reaches 1.1468 (red line on the chart) and take profit at the price of 1.1430. A decline will occur if the European Commission reports weak economic forecasts.

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 1.1491, but the MACD line should be in the overbought area, as only by that will the market reverse to 1.1468 and 1.1430.

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.