Analysis of transactions in the EUR/USD pair:
There was only a single signal yesterday to sell the euro at the level of 1.1852, but it did not coincide with the condition for entering the market, so the entry point had to be skipped. The chart shows how testing the level of 1.1852, where it is recommended to sell the euro, occurs when the MACD indicator is in the oversold area. Therefore, the pair has a serious limited potential to decline. There were no other signals to enter the market.
Trading recommendations for July 13
The statements of the Fed representatives yesterday negatively affected the US dollar, which brought back the demand for the Euro currency. Today, a much more interesting day is expected. Inflation in Germany and France will be released in the morning. The growth of this indicator may lead to an active recovery of the euro and to the continuation of the upward trend. In the afternoon, a similar indicator of the consumer price index will be released in the US. This week’s direction of the EUR/USD pair depends on it since inflation is very important for the US central bank. The lack of growth in the indicator can lead to immediate recovery of the Euro currency.
For long positions:
It is possible to buy the euro when the price reaches the level of 1.1880 (green line on the chart) with an upward target of 1.1937, from which it is suggested to leave the market with a profit and sell the euro immediately in the opposite direction (counting on a movement of 10-15 points in the opposite direction from the level). It is also possible to expect the euro to make a major upward movement along with the trend in case of weak US inflation data, which will certainly awaken the appetite of large investors for risk. Before buying, make sure that the MACD indicator is above zero and just starting to rise from it.
For short positions:
It is possible to sell the euro after reaching the level of 1.1852 (red line on the chart). The target will be the level of 1.1796, where it is suggested to exit the market and buy the euro immediately in the opposite direction (counting on a movement of 10-15 points in the opposite direction from the level). The pressure on the euro will return if there will be strong data on the US economy and weak inflation indicators in the EU. Nevertheless, it is best to trade on the euro’s further strengthening. Before selling, make sure that the MACD indicator is below zero and just starting to decline from it. One can also sell the euro today if the price reaches the level of 1.1880, but at this time, the MACD indicator should be in the overbought area, which will limit the upward potential of the pair and lead to a downward reversal. If so, a decline to the opposite level of 1.1852 can be expected.
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.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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