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Forex Analysis & Reviews: Analysis and trading tips for EUR/USD on August 30
time 30.08.2022 09:38 AM
time Relevance up to, 31.08.2022 09:19 AM

Analysis of transactions in the EUR / USD pair

Euro tested 0.9953 at the time when the MACD was just starting to move above zero, which was a good signal to buy. It led to a price increase of more than 60 pips, which was followed by a test on 1.0014. Sell-offs around this level then brought a 20-pip correction. No other signals appeared for the rest of the day.

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The speech of ECB board member Philip Lane did little to help the euro. Rather, the growth was caused by market manipulations, as well as on the attempt of large players to control everything that is below parity. Last week's lows were also not updated, which can guarantee euro buyers a chance of success.

Today, a report on consumer confidence in the euro area will be released, followed by the data on Germany's consumer price index. A rise in inflation will not come as a surprise, so euro is unlikely to fall so much. In the afternoon, the US will publish a report on consumer confidence, where its growth will bring down risk appetite. Speeches of FOMC members Thomas Barkin and John Williams will also be in favor of dollar, which will lead to a downward correction in EUR/USD.

For long positions:

Buy euro when the quote reaches 1.0008 (green line on the chart) and take profit at the price of 1.0055. There is little chance for a rally, especially as the pair approaches the upper levels of the sideways channel around 1.0075. However, strong statistics for the Euro area may help buyers.

Take note that when buying, the MACD line should be above zero or is starting to rise from it. Euro can also be bought at 0.9974, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0008 and 1.0055.

For short positions:

Sell euro when the quote reaches 0.9974 (red line on the chart) and take profit at the price of 0.9916. Pressure will return if sellers were able to bring the pair back below parity.

Take note that when selling, the MACD line should be below zero or is starting to move down from it. Euro can also be sold at 1.0008, but the MACD line should be in the overbought area, as only by that will the market reverse to 0.9974 and 0.9916.

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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.

Jakub Novak,
Analytical expert of InstaForex
© 2007-2023
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