EUR/USD Trading Analysis: Strategies for Long and Short Positions
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Analysis of transactions and tips for trading EUR/USD
Further growth became limited because the test of 1.0554 coincided with the sharp upward move of the MACD line from zero. After a short period of time, another test took place, but the MACD line went in the overbought area, leading to a signal to sell. This resulted in a price decrease of over 30 pips.
The European Central Bank kept interest rates unchanged, announcing a softer approach to future monetary policy based on data that will be received in the future. However, they also did not rule out the possibility of another rate hike, similar to the Federal Reserve.
Strong US GDP data for the third quarter did not particularly help dollar. And most likely, today, the empty macroeconomic calendar will give euro bulls the chance for an upward correction.
For long positions:
Buy when euro hits 1.0582 (green line on the chart) and take profit at the price of 1.0604. Growth will occur as part of an upward correction, following the update of the weekly low. However, when buying, make sure that the MACD line lies above zero or rising from it. Euro can also be bought after two consecutive price tests of 1.0562, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0582 and 1.0604.
For short positions:
Sell when euro reaches 1.0562 (red line on the chart) and take profit at the price of 1.0531. Pressure will increase in the event of a breakdown of the important support level of 1.0562, which will lead to a continuation of yesterday's bearish trend. However, when selling, make sure that the MACD line lies under zero or drops down from it. Euro can also be sold after two consecutive price tests of 1.0582, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0562 and 1.0531.
