07.12.202313:30 Forex Analysis & Reviews: Analysis and trading tips for EUR/USD on December 7 (US session)

Analysis of transactions and trading tips on EUR/USD

Further growth became limited because the test of 1.0773 occurred at a time when the MACD line rose quite sharply from zero.

Disappointing 3rd quarter GDP data for the eurozone put pressure on euro, albeit the negative figure only came from the year-on-year report. As for today, data on US jobless claims and wholesale trade inventories will come out, but markets may not pay attention as traders will focus more on the non-farm payrolls report scheduled to be released tomorrow. This will provoke a correction, unless bullish activity does not appear at the daily highs, which will retain pressure on the pair.

For long positions:

Buy when euro hits 1.0785 (green line on the chart) and take profit at the price of 1.0809. Growth will occur only in the case of very weak data from the US.

When buying, ensure that the MACD line lies above zero or rises from it. Euro can also be bought after two consecutive price tests of 1.0760, but the MACD line should be in the oversold area, as only by that will the market reverse to 1.0785 and 1.0809.

For short positions:

Sell when euro reaches 1.0760 (red line on the chart) and take profit at the price of 1.0726. Pressure will increase amid a strong labor market report and lack of bullish activity around the daily high.

When selling, make sure that the MACD line lies below zero or drops down from it. Euro can also be sold after two consecutive price tests of 1.0785, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0760 and 1.0726.

What's on the chart:

Thin green line - entry price at which you can buy EUR/USD

Thick green line - estimated price where you can set Take-Profit (TP) or manually fix profits, as further growth above this level is unlikely.

Thin red line - entry price at which you can sell EUR/USD

Thick red line - estimated price where you can set Take-Profit (TP) or manually fix profits, as further decline below this level is unlikely.

MACD line- it is important to be guided by overbought and oversold areas when entering the market

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.