19.09.202210:07 Forex Analysis & Reviews: Analysis and trading tips for EUR/USD on September 19

Analysis of transactions in the EUR / USD pair

Euro tested 0.9977 at the time when the MACD was just starting to move below zero, which was a good signal to sell. However, the pair only fell by 30 pips, after which it bounced back and tested 1.0003. By that time, the MACD line moved up quite a lot, limiting the upside potential of euro.

CPI data from Italy and the Euro area did not affect euro much as they were in line with forecasts. It also reinforced the idea that the European Central Bank will maintain its tough approach on monetary policy. Then, by afternoon, EUR/USD rose as consumer sentiment in the US fell sharply.

There is nothing important scheduled in the EU today except for the speeches of some ECB and Bundesbank representatives. There is a housing market report coming in the US, but it is unlikely to affect the market. Do not expect pressure to increase in EUR/USD.

For long positions:

Buy euro when the quote reaches 0.9994 (green line on the chart) and take profit at the price of 1.0026. Growth is unlikely, but there is a chance to reach the upper border of the side channel at 1.0030.

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 0.9967, but the MACD line should be in the oversold area as only by that will the market reverse to 0.9994 and 1.0026.

For short positions:

Sell euro when the quote reaches 0.9967 (red line on the chart) and take profit at the price of 0.9940. Pressure will return amid an unsuccessful attempt of buyers to get out of parity.

Take note that when selling, the MACD line should be below zero or is starting to move down from it. Euro can be sold at 0.9994, but the MACD line should be in the overbought area as only by that will the market reverse to 0.9967 and 0.9940.

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.