20.01.202309:18 Forex-elemzések és áttekintések: Analysis and trading tips for EUR/USD on January 20

Analysis of transactions and tips for trading EUR/USD

Euro tested 1.0807 when the MACD line was just starting to move above zero, which was a good reason to buy. This resulted in a price increase of around 20 pips. No other signals appeared for the rest of the day.

Hawkish statements from ECB chief Christine Lagarde supported euro on Thursday because it focused on further interest rate hikes in the eurozone. Meanwhile, the ECB account balance data was ignored, but this was already expected.

Today, Germany's PPI data is due, followed by another speech from Lagarde. If these events do not lead to a rise in euro in the morning, expect a strong downward correction during the US session. A good reading on the US secondary housing market sales report will also strengthen dollar, as will hawkish remarks from FOMC members Patrick Harker and Christopher Waller.

For long positions:

Buy euro when the quote reaches 1.0841 (green line on the chart) and take profit at the price of 1.0880. Growth will occur if ECB chief Christine Lagarde give hawkish comments on monetary policy. Strong inflation data in Germany could also prompt a price increase. However, before buying, make sure that the MACD line is above zero or is starting to rise from it. Euro can also be bought at 1.0811, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0841 and 1.0880.

For short positions:

Sell euro when the quote reaches 1.0811 (red line on the chart) and take profit at the price of 1.0762. Pressure will return if the upcoming reports are weaker than expected and if the attempt to consolidate above 1.0850 fails. 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 1.0841, however, the MACD line should be in the overbought area, as only by that will the market reverse to 1.0811 and 1.0762.

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.