06.07.202107:59 Forex Analysis & Reviews: Analysis and trading recommendations for EUR/USD on July 6

Analysis of transactions in the EUR / USD pair

Markets were calm on Monday because it was weekend in the US, not to mention they were celebrating "Independence Day". As a result, only one signal was formed in EUR / USD, and this was to buy at 1.1870, which had to be ignored because it came when the MACD line was at the overbought area. Growth was significantly limited so euro only rose 10 pips. No other signals appeared for the rest of the day.

Trading recommendations for July 6

Data released on Monday led to an increase in euro, which accordingly formed a buy signal in the market. However, growth was a bit limited because the currency did not get support from new buyers.

Today, further increase is expected amid upcoming reports on German industrial orders and Eurozone business sentiment. No less important is the report on EU retail sales, which analysts expect to show 3.4% growth. If the real data exceeds this, euro will climb even more, thereby continuing the upward trend. Then, in the afternoon, price movement may change again on the reports on US services PMI and economic optimism index.

For long positions:

Open a long position when euro reaches 1.1881 (green line on the chart), and then take profit around the level of 1.1919. EUR / USD will rise if Germany and the Eurozone releases strong economic indicators. But before buying, make sure that the MACD line is above zero, or is starting to rise from it.

For short positions:

Open a short position when euro reaches 1.1858 (red line on the chart), and then take profit at the level of 1.1819. Further decline will occur if business sentiment in Germany declines. But before selling, make sure that the MACD line is below zero, or 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.