Analysis of transactions in the EUR / USD pair
The trading signal that emerged in EUR / USD yesterday was rather ambiguous, since on the one hand, long positions set at 1.2222 led to a price jump of about 25 pips, which, in such a low trading volume and under most yearly highs, is pretty good. But on the other hand, the MACD line was at a fairly high level, which should have scared off many speculative traders. No other signal emerged yesterday.
Trading recommendations for December 29
The EU parliament has approved the Brexit trade deal for 2 months, and in March next year, at the next meeting of the parliament, a final decision will be made.
Meanwhile, news emerged that the new strain of coronavirus has reached the EU, but many are hopeful that the current COVID-19 vaccines will also be effective against the mutated virus.
For long positions:
Buy the euro when the quote reaches 1.2250 (green line on the chart), and then take profit around the level of 1.2297. Despite the low trading volume and high volatility, price may climb up if stop orders have been removed above this year’s highs. Of course, keep in mind that before buying, make sure that the MACD line is above zero and is starting to rise from it.
For short positions:
Sell the euro after the quote reaches 1.2225 (red line on the chart), and then take profit at the level of 1.2179. Demand for risky assets will most likely decrease this week because of low trading volume. Also, keep in mind that before selling, make sure that the MACD line is below zero and is starting to move down from it.
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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