Analysis of transactions and tips for trading EUR/USD

Euro slumped further, continuing the bear market that emerged after the strong US labor market data last Friday. And since there are no important statistics scheduled to be released today, it is likely that the situation will persist, even if speeches from ECB representatives came as surprise. In the afternoon, the US trade balance and consumer credit reports will be published, which may have some impact on the market trend. Meanwhile, the speech of Fed Chairman Jerome Powell will be of little interest as markets are now focused on new data and statistics. But if Powell addresses the situation on the labor market, demand for dollar could intensify.

For long positions:

Buy euro when the quote reaches 1.0763 (green line on the chart) and take profit at the price of 1.0798. Growth could occur if there are hawkish comments from ECB representatives. 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 1.0728, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0763 and 1.0798.

For short positions:

Sell euro when the quote reaches 1.0728 (red line on the chart) and take profit at the price of 1.0687. Pressure will remain if there is no bullish activity at yesterday's low. 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 1.0763, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0728 and 1.0687.

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.