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The test of 1.0731 coincided with the time when the MACD line was just starting to move down from zero, which, together with weak GDP data from Germany, led to a price decrease of around 17 pips. However, pressure immediately eased and the pair resumed trading around 1.0731
Volatility may spike after the release of US GDP data for the first quarter. But more interesting is the report on jobless claims, which could cause a decline in dollar provided that the figure shows an increase. Growth in pending home sales could give a similar scenario. The deadlock in the issue of US debt ceiling is likely to hamper the upward potential in EUR/USD.
For long positions:
Buy euro when the price hits 1.0744 (green line on the chart) and then take-profit when the quote reaches the level of 1.0791. Growth is possible if there is positive news on the US debt limit. However, before buying, traders should make sure that the MACD line is above zero and is starting to rise from it.
Euro can also be bought after the level of 1.0720 is tested twice, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0744 and 1.0791.
For short positions:
Sell euro when the price reaches 1.0720 (red line on the chart) and take-profit at the level of 1.0677. Pressure will persist if there is positive labor market statistics in the US. However, before selling, traders should make sure that the MACD line is below zero and is starting to drop down from it.
Euro can also be sold after the level of 1.0744 is tested twice, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0720 and 1.0677.
What's on the chart:
Thin green line - entry price at which you can buy EUR/USD
Thick green line - estimated price where you can set Take-Profit (TP) or manually fix profits, as further growth above this level is unlikely.
Thin red line - entry price at which you can sell EUR/USD
Thick red line - estimated price where you can set Take-Profit (TP) or manually fix profits, as further decline below this level is unlikely.
MACD line- it is important to be guided by overbought and oversold areas when entering the market
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.
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.
