27.05.202211:25 Forex-elemzések és áttekintések: Analysis and trading tips for EUR/USD on May 27

Analysis of transactions in the EUR / USD pair

EUR/USD reaching 1.0695 led to a buy signal in the market. Coincidentally, the MACD line was just starting to move above zero, so the pair rose by 30 pips. No other signal appeared for the rest of the day.

EUR/USD rose yesterday because US GDP for the first quarter declined more than expected. It reached new weekly highs, then today hit a new monthly high as demand continues to increase, thanks to the statements of ECB officials saying that there is a need for more rate hikes other than the two planned in July and September this year.

Today, a report on the M3 aggregate of the money supply and volume of lending in the private sector of the Eurozone will be released, but they are unlikely to affect the market. In the afternoon, data on income and spending in the US will be published, which could lead to a rise in dollar provided that the figures show growth. There will also be data on foreign trade balance, consumer sentiment and inflation expectations, as well as a speech from FOMC member James Bullard, but these may be ignored by the market.

For long positions:

Buy euro when the quote reaches 1.0763 (green line on the chart) and take profit at the price of 1.0799 (thicker green line on the chart). There is a chance for a rally today, but traders should take into account upcoming statistics from the US. Nevertheless, make sure that when buying, the MACD line is above zero or is starting to rise from it. It is also possible to buy at 1.0737, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0763 and 1.0799.

For short positions:

Sell euro when the quote reaches 1.0737 (red line on the chart) and take profit at the price of 1.0704. Pressure will return as it is the end of the week, however, note that when selling, make sure that the MACD line is below zero, or is starting to move down from it. Euro can also be sold at 1.0763, but the MACD line should be in the overbought area, as only by that will the market reverse to 1.0737 and 1.0704.

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 decisions based on the current market situation is an inherently losing strategy for an intraday trader.