empty
 
 
You are about to leave
www.instaforex.eu >
a website operated by
INSTANT TRADING EU LTD
Open Account

18.11.202209:07 Forex Analysis & Reviews: Analysis and trading tips for EUR/USD on November 18

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

Analysis of transactions in the EUR / USD pair

The test of 1.0361 happened when the MACD line went down quite a lot from zero, which limited the downside potential of the pair, especially ahead of important data on inflation in the Euro area.

Exchange Rates 18.11.2022 analysis

ECB President Christine Lagarde's speech did not change the direction of EUR/USD much. However, pressure returned after the release of the CPI data for the eurozone, which showed a slowdown in price growth. Strong data on issued building permits and new foundations laid in the US also affected the market, but the balance returned by the end of the day.

Today, there is nothing on the eurozone apart from another speech from Lagarde and ECB board member Joachim Nagel, so may continue in the side channel. In the afternoon, the US will release a report on home sales in the secondary market, but it will not have much impact on dollar. If euro buyers fail to get above 1.0402, pressure will return in EUR/USD by the end of the week.

For long positions:

Buy euro when the quote reaches 1.0402 (green line on the chart) and take profit at the price of 1.0463. Growth could occur, but there needs to be hawkish statements from the ECB president and bad statistics on the US. Also, remember that when buying, the MACD line should be above zero or is starting to rise from it.

Euro can also be bought at 1.0357, however, the MACD line should be in the oversold area as only by that will the market reverse to 1.0402 and 1.0463.

For short positions:

Sell euro when the quote reaches 1.0357 (red line on the chart) and take profit at the price of 1.0289. Pressure will return if buyers remain inactive this morning. 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 1.0402, however, the MACD line should be in the overbought area, as only by that will the market reverse to 1.0357 and 1.0289.

Exchange Rates 18.11.2022 analysis

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.

Jakub Novak
Analytical expert of InstaForex
© 2007-2024

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.




You are now leaving www.instaforex.eu, a website operated by INSTANT TRADING EU LTD
Can't speak right now?
Ask your question in the chat.

Turn "Do Not Track" off