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19.08.202209:20 Forex Analysis & Reviews: Analysis and trading tips for EUR/USD on August 19

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Analysis of transactions in the EUR / USD pair

The test of 1.0177 took place at the moment when the MACD was just starting to move above zero, which was a good signal to buy. Unfortunately, there was no large rally as after rising by just 20 pips, pressure returned in the market.

In the afternoon, a sharp drop to the 1.0149 occurred, but it was during the time when the MACD line was far from zero, which limited the downside potential of the pair. No other signals appeared for the rest of the day.

Exchange Rates 19.08.2022 analysis

The increase of consumer prices in the Euro area is a bearish signal for EUR/USD. Then, the weekly data on jobless claims, Philadelphia Fed manufacturing index and existing home sales strengthened demand for dollar further.

There are no important statistics that could drastically affect the bearish market direction today, and it is likely that Germany's report on producer prices will be ignored. Most traders will take profits in the afternoon after some attempts to continue the downward trend.

For long positions:

Buy euro when the quote reaches 1.0095 (green line on the chart) and take profit at the price of 1.0128. However, there is little chance for a rally today, especially since a bearish market is brewing. It is only in the afternoon that a slight upward correction is possible.

Take note that when buying, the MACD line should be above zero or is starting to rise from it. Euro can also be bought at 1.0074, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0095 and 1.0128.

For short positions:

Sell euro when the quote reaches 1.0074 (red line on the chart) and take profit at the price of 1.0043. Pressure will most likely continue, so sell at every opportunity.

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 1.0095, but the MACD line should be in the overbought area, as only by that will the market reverse to 1.0074 and 1.0043.

Exchange Rates 19.08.2022 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.

Przedstawiono Jakub Novak,
przez eksperta analitycznego
z grupy firm InsaForex © 2007-2024
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