Analysis of transactions and tips for trading EUR/USD

When the pair tested 1.0715, the MACD line was already far from zero, so the downside potential was limited. No other market signal appeared for the rest of the day.

Although the January data on industrial production in the eurozone, quarterly unemployment rate from Italy and consumer price index from France had little impact on euro, a decline was still seen in the market as risk appetite fell due to expectations that the ECB will not raise rates amid a sharp collapse in the US banking sector. If that really happens today, pressure will return, which will lead to a further price decrease in EUR/USD.

In the afternoon, the US will release a report on jobless claims, followed by data on the number of building permits issued. These figures are important for the economy, so a positive change could lead to a stronger USD. Data on new foundations and the Philadelphia Fed manufacturing index only have little impact to the market.

For long positions:

Buy euro when the quote reaches 1.0616 (green line on the chart) and take profit at the price of 1.0660. Growth is possible, but it will only be in the morning before the ECB decision. 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 1.0593, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0616 and 1.0660.

For short positions:

Sell euro when the quote reaches 1.0593 (red line on the chart) and take profit at the price of 1.0552. Pressure will return at any moment, especially if the ECB does not raise rates today. However, when selling, make sure that the MACD line is under zero or is starting to move down from it. Euro can also be sold at 1.0616, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0593 and 1.0552.

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.