27.07.202211:37 Forex Analysis & Reviews: Analysis and trading tips for EUR/USD on July 27

Analysis of transactions in the EUR / USD pair

EUR/USD tested 1.0233. At that time, the MACD line had just started to move above zero, which is a good signal to buy. Unexpectedly, the pair continued to go down and tested 1.0211. That time, the MACD began moving below zero, so the market signal was to sell. This resulted to a price decrease of more than 70 pips.

EUR/USD fell even though there were no important statistics in the Euro area yesterday. Then, it declined further in the afternoon despite a decrease in the level of consumer confidence in the US.

Ahead is a report on consumer climate in Germany, followed by data on lending in the EU private sector. The former is likely to decrease, which will lead to the decline of the pair. The latter, meanwhile, will be of little interest because traders will focus more on the decision of the Federal Reserve on interest rates. An aggressive increase in the cost of borrowing will lead to dollar purchases and the pair's further decline. If the committee does not report anything new, demand for euro will return. Markets will also pay attention to the foreign trade balance in the US and data on durable goods.

For long positions:

Buy euro when the quote reaches 1.0153 (green line on the chart) and take profit at the price of 1.0205. There is a chance for a rally today, but only after the meeting of the Federal Reserve.

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 1.0118, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0153 and 1.0205.

For short positions:

Sell euro when the quote reaches 1.0118 (red line on the chart) and take profit at the price of 1.0071. Pressure will return if the attempt to hit new local highs fail.

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 1.0153, but the MACD line should be in the overbought area, as only by that will the market reverse to 1.0118 and 1.0071.

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.