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

01.02.202307:36 Forex Analysis & Reviews: Analysis and trading tips for EUR/USD on February 1

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 and tips for trading EUR/USD

The test of 1.0834 occurred when the MACD line was just starting to move below zero, which was a pretty good signal to sell. Accordingly, it resulted in a price decrease of around 25 pips. Shortly after, a test of 1.0805 took place, which led to a rebound of about 30 pips. No other signals appeared for the rest of the day.

Exchange Rates 01.02.2023 analysis

GDP data from the eurozone was good, which indicates that the region had managed to avoid a recession. However, euro did not rise, ignoring also Germany and Italy's unemployment figures. Price increased only in the afternoon, when the US released a weak report on consumer confidence. The upward movement brought the market back into balance.

Today, Germany and Italy will release data on their manufacturing activity indices, followed by a report on eurozone consumer price index. The latter may affect the direction of euro and prompt a rise in quotes provided that underlying prices show a decrease. The eurozone unemployment rate will not be of much interest. More important is the Fed meeting in the afternoon, where interest rates could be raised by 0.25%. That will weaken dollar and cause a sharp rise in euro, especially since other data relating to employment and manufacturing activity will be of little interest. Dovish stance of the Fed will also return risk appetite.

For long positions:

Buy euro when the quote reaches 1.0882 (green line on the chart) and take profit at the price of 1.0910. Growth could occur if the economic data from the eurozone exceeds expectations. However, make sure that when buying, the MACD line is above zero or is starting to rise from it. Euro can also be bought at 1.0852, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0882 and 1.0910.

For short positions:

Sell euro when the quote reaches 1.0852 (red line on the chart) and take profit at the price of 1.0823. Pressure will increase if economic reports from the Euro area turn out to be weaker than expected. However, make sure that when selling, the MACD line is below zero or is starting to move down from it. Euro can also be sold at 1.0882, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0852 and 1.0823.

Exchange Rates 01.02.2023 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