21.06.202211:45 Forex Analysis & Reviews: Analysis and trading tips for EUR/USD on June 21

Analysis of transactions in the EUR / USD pair

EUR/USD reaching 1.0512 led to a sell signal in the market, however, having the MACD line far from zero limited the downside potential of the pair. Sometime later, the pair tested the level again, but this time the signalthat was formed was to buy. Since the MACD line was in the oversold area, the pair rose by 25 pips. No other signal appeared for the rest of the day.

Euro continued to decline on Monday because producer prices in Germany disappointed traders and the speech of ECB chief Christine Lagarde was not related to monetary policy at all. Today, there are no statistics scheduled to be released in the eurozone, but there will be speeches from ECB and Bundesbank representatives, which will be decisive for the market. In the afternoon, there are statistics, but they can harm the dollar as the housing market in the US has not been in the best shape lately due to higher interest rates. However, this may be offset by the speech of Fed member Loretta Mester.

For long positions:

Buy euro when the quote reaches 1.0534 (green line on the chart) and take profit at the price of 1.0598 (thicker green line on the chart). There is a chance for a rally today, but only if the statements of ECB representatives are hawkish. 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 1.0502, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0534 and 1.0598.

For short positions:

Sell euro when the quote reaches 1.0502 (red line on the chart) and take profit at the price of 1.0451. Pressure will return if there is no bullish activity around 1.0534. However, 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 1.0534, but the MACD line should be in the overbought area, as only by that will the market reverse to 1.0502 and 1.0451.

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.