05.01.202312:04 Forex Analysis & Reviews: Analysis and trading tips for EUR/USD on January 5

Analysis of transactions in the EUR / USD pair

Euro is unlikely to react much to Germany's foreign trade balance data and the Eurozone's producer price index. This is because the figures are not as important as those that await in the afternoon. Even so, good inflation figures could bring back demand for the currency and lead to a rise towards daily highs.

Key data in the afternoon are the US employment report and weekly jobless claims. An increase in the figures will provoke a rise in USD, which could put pressure on the euro and push it within a horizontal channel. Data on the US foreign trade balance will be of little interest.

For long positions:

Buy euro when the quote reaches 1.0624 (green line on the chart) and take profit at the price of 1.0666. Although there is a chance for growth today, it is unlikely to last long. Also, buy only when the MACD line is above zero or starting to rise from it. Euro can also be bought at 1.0590, however, the MACD line should be in the oversold area as only by that will the market reverse to 1.0624 and 1.0666.

For short positions:

Sell euro when the quote reaches 1.0590 (red line on the chart) and take profit at the price of 1.0544. Pressure will return if economic reports from the US exceed expectations. But 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 1.0624, however, the MACD line should be in the overbought area, as only by that will the market reverse to 1.0590 and 1.0544.

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.