Relevance up to 02:00 2022-06-25 UTC–4
Analysis of transactions in the EUR / USD pair
EUR/USD hitting 1.0577 prompted a buy signal in the market, however, there was no sharp increase even though the MACD line started to move above zero. Shortly after, the pair went to 1.0544, where a sell signal was formed. This time, the MACD line was moving below zero, so the pair fell by more than 60 pips, ofsetting the losses earlier.
PMI data from the Eurozone disappointed traders as there was little upside activity. Likewise, reports from the US did not lead to a surge in volatility, while the speech of Fed chairman Jerome Powell repeated exactly everything he said the day before.
A lot of reports are scheduled to be released today, and these are business expectations, assessment of the current situation, and business climate index from Germany. The last indicator is the most important as it may lead to an increase in euro.
In the afternoon, there will be data on consumer expectations and consumer sentiment from the US, followed by a report on new home sales. The latter could hurt dollar as its figure is expected to go down. Statements from ECB and Fed representatives are unlikely to spark market volatility.
For long positions:
Buy euro when the quote reaches 1.0569 (green line on the chart) and take profit at the price of 1.0637 (thicker green line on the chart). There is a chance for a rally today, but only after strong statistics from Germany. Also, make sure that when buying, the MACD line is above zero or is starting to rise from it. Euro can also be bought at 1.0528, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0569 and 1.0637.
For short positions:
Sell euro when the quote reaches 1.0528 (red line on the chart) and take profit at the price of 1.0475. Pressure will return if the UK reports weaker-than-expected economic data. 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 1.0569, but the MACD line should be in the overbought area, as only by that will the market reverse to 1.0528 and 1.0475.
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.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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