23.01.202311:35 Forex Analysis & Reviews: Analysis and trading tips for EUR/USD on January 23

Analysis of transactions and tips for trading EUR/USD

Euro tested 1.0806 when the MACD line was just starting to move above zero, which was a good reason to buy. It resulted in a price increase of around 12 pips. No other signals appeared for the rest of the day.

PPI data in Germany was much worse than expected, increasing expectations of further interest rate hikes in the eurozone. Upcoming report on consumer confidence may also boost expectations of further gains against dollar, especially since there are no other statistics that will affect the balance of power. Only the US index of leading economic indicators is due to be released, but it has little to do with the forex market.

For long positions:

Buy euro when the quote reaches 1.0929 (green line on the chart) and take profit at the price of 1.0977. Growth will occur if ECB chief Christine Lagarde give hawkish comments on monetary policy. 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 1.0887, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0929 and 1.0977.

For short positions:

Sell euro when the quote reaches 1.0887 (red line on the chart) and take profit at the price of 1.0837. Pressure will return if the attempt to break above the monthly high 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 1.0929, however, the MACD line should be in the overbought area, as only by that will the market reverse to 1.0887 and 1.0837.

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.