empty
 
 
01.02.2023 07:36 AM
Analysis and trading tips for EUR/USD on February 1

Analysis of transactions and tips for trading EUR/USD

The test of 1.0834 occurred when the MACD line was just starting to move below zero, which was a pretty good signal to sell. Accordingly, it resulted in a price decrease of around 25 pips. Shortly after, a test of 1.0805 took place, which led to a rebound of about 30 pips. No other signals appeared for the rest of the day.

This image is no longer relevant

GDP data from the eurozone was good, which indicates that the region had managed to avoid a recession. However, euro did not rise, ignoring also Germany and Italy's unemployment figures. Price increased only in the afternoon, when the US released a weak report on consumer confidence. The upward movement brought the market back into balance.

Today, Germany and Italy will release data on their manufacturing activity indices, followed by a report on eurozone consumer price index. The latter may affect the direction of euro and prompt a rise in quotes provided that underlying prices show a decrease. The eurozone unemployment rate will not be of much interest. More important is the Fed meeting in the afternoon, where interest rates could be raised by 0.25%. That will weaken dollar and cause a sharp rise in euro, especially since other data relating to employment and manufacturing activity will be of little interest. Dovish stance of the Fed will also return risk appetite.

For long positions:

Buy euro when the quote reaches 1.0882 (green line on the chart) and take profit at the price of 1.0910. Growth could occur if the economic data from the eurozone exceeds expectations. 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 1.0852, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0882 and 1.0910.

For short positions:

Sell euro when the quote reaches 1.0852 (red line on the chart) and take profit at the price of 1.0823. Pressure will increase if economic reports from the Euro area turn out to be weaker than expected. 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 1.0882, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0852 and 1.0823.

This image is no longer relevant

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
EURUSD
Euro vs US Dollar
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Start trade
Start trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS

Recommended Stories

Analysis and trading tips for EUR/USD and GBP/USD on March 24 (US session)

Euro and pound fell as risk appetite dwindled due to weak economic activity in both the eurozone and the UK. But activity data from the US, which

Jakub Novak 16:00 2023-03-24 UTC+2

Analysis and trading tips for GBP/USD on March 24

Analysis of transactions and tips for trading GBP/USD The pair tested 1.2335 at a time when the MACD line was already far from zero, limiting the upside potential

Jakub Novak 08:05 2023-03-24 UTC+2

Analysis and trading tips for EUR/USD on March 24

Analysis of transactions and tips for trading EUR/USD The pair tested 1.0893 at a time when the MACD line was far from zero, limiting the downside potential of the pair

Jakub Novak 08:03 2023-03-24 UTC+2

USD/CAD: new downtrend, 1.3658 as downside obstacle

The USD/CAD pair is trading at 1.3673 at the time of writing and it stands above the 1.3658 former low which represents a downside obstacle

Ralph Shedler 14:30 2023-03-23 UTC+2

Analysis and trading tips for EUR/USD and GBP/USD on March 23 (US session)

Growth in euro is slowing as buying activity started to weaken after the pair updated the March high. In addition, yesterday's momentum could very quickly turn into a smooth decline

Jakub Novak 11:20 2023-03-23 UTC+2

Analysis and trading tips for GBP/USD on March 23

The pair tested 1.2249 at a time when the MACD line was just starting to move above zero, which was a good reason to buy. This led to a price

Jakub Novak 08:35 2023-03-23 UTC+2

Analysis and trading tips for EUR/USD on March 23

The pair tested 1.0795 at a time when the MACD line was just starting to move above zero, which was a good reason to buy. There was an upward movement

Jakub Novak 08:33 2023-03-23 UTC+2

Gold turns to upside as expected

The price of gold rallied in the last hours and now is trading at 1,950 far above today's low of 1,934. You knew from my previous analysis that XAU/USD maintains

Ralph Shedler 17:32 2023-03-22 UTC+2

Analysis and trading tips for EUR/USD and GBP/USD on March 22 (US session)

Euro and pound continued to rise after the UK reported another increase in its consumer price index. Economists had expected a slowdown in growth, but what happened was that prices

Jakub Novak 13:00 2023-03-22 UTC+2

Analysis and trading tips for GBP/USD on March 22

The pair tested 1.2246 at a time when the MACD line was just starting to move below zero, which was a good reason to sell. This led to a price

Jakub Novak 08:09 2023-03-22 UTC+2
Can't speak right now?
Ask your question in the chat.