Relevance up to 08:00 2022-06-07 UTC+2 Company does not offer investment advice and the analysis performed does not guarantee results. The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

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Analysis of transactions in the EUR / USD pair

EUR/USD reaching 1.0740 led to a buy signal in the market, however, having the MACD line far from zero limited the upside potential of the pair. Then, the continued quote falling in the afternoon and hit 1.0702. No other signal appeared for the rest of the day.

PMI data from Germany, Italy and the whole Eurozone only put a slight pressure on the euro as the values came out pretty good despite the current situation of the economy. Similarly, the report on retail sales in the Euro area for April did not put much pressure on the pair because the slowdown in sales will have a positive effect on inflationary pressures. In the afternoon, US data on the number of employed in the non-farm sector exceeded expectations, but fell short of April figures, resulting in a sharp downward movement of euro and new purchases from large players, which kept the pair within the sideways channel .

Today, there are no important statistics scheduled to be released from the Eurozone and the US, so it is better to stick to the side channel and open positions in opposite directions.

For long positions:

Buy euro when the quote reaches 1.0744 (green line on the chart) and take profit at the price of 1.0785 (thicker green line on the chart). There is a chance for a rally today because buyers now have an advantage over sellers, especially after the release of the US labor market data last Friday. However, note that when buying, the MACD line should be above zero or is starting to rise from it. It is also possible to buy at 1.0655, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0684 and 1.0723.

For short positions:

Sell euro when the quote reaches 1.0710 (red line on the chart) and take profit at the price of 1.0680. Pressure will return if the pair breaks through last Friday's lows. However, note that 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 1.0744, but the MACD line should be in the overbought area, as only by that will the market reverse to 1.0710 and 1.0680.

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 decisions based on the current market situation is an inherently losing strategy for an intraday trader.