31.01.202409:08 Forex Analysis & Reviews: Analysis and trading tips for EUR/USD on January 31

Analysis of transactions and tips for trading EUR/USD

The test of 1.0835 occurred during the downward move of the MACD line from zero. This provoked a sell signal, but the pair did not decrease. Later, it tested 1.0855 twice, which led to a drop of 20 pips.

Good GDP data for France and Italy offset the weak GDP figure for Germany. This helped the eurozone avoid an economic recession, causing euro to rise. However, the US consumer confidence report halted the increase in risk appetite.

Today, Germany will release its report on retail sales, unemployment rate, and consumer price index. France will also publish its data. Most likely, weak inflationary pressure will lead to a further decline in EUR/USD ahead of the Fed meeting scheduled in the afternoon.

For long positions:

Buy when euro hits 1.0827 (green line on the chart) and take profit at the price of 1.0854. Growth will occur in the case of very good data from Germany and a sharp increase in price pressure in the region.

When buying, make sure that the MACD line lies above zero or rises from it. Euro can also be bought after two consecutive price tests of 1.0815, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0827 and 1.0854.

For short positions:

Sell when euro reaches 1.0815 (red line on the chart) and take profit at the price of 1.0786. Pressure on the pair will increase amid very weak macroeconomic statistics and a more pronounced slowdown in price pressure, allowing the ECB to lower rates earlier than expected.

When selling, make sure that the MACD line lies under zero or drops down from it. Euro can also be sold after two consecutive price tests of 1.0827, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0815 and 1.0786.

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.