Relevance up to 08:00 2022-07-21 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.
Analysis of transactions in the EUR / USD pair
When EUR/USD tested 1.0171, the MACD line was far from zero, so the upside potential was limited. Likewise, when it tested 1.0215, there were only losses. No other signals appeared for the rest of the day.
Given that the rate at which consumer prices are growing was better than expected, demand for euro rose, leading to an increase in EUR/USD quotes yesterday. Meanwhile, data on issued building permits in the US and volume of construction of new homes were ignored, so the dollar did not have any chance to rally in the market.
However, today, there are no important statistics that could extend the growth of the euro, so expect some downward correction in the pair. Upcoming reports over the US housing market and mortgage loans are also of little interest, so volatility should be fairly subdued.
For long positions:
Buy euro when the quote reaches 1.0250 (green line on the chart) and take profit at the price of 1.0290 (thicker green line on the chart). There is a chance for a rally today, but only if reports on Germany and the Euro area exceed expectations.
Take note that when buying, the MACD line should be above zero or is starting to rise from it. Euro can also be bought at 1.0210, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0250 and 1.0290.
For short positions:
Sell euro when the quote reaches 1.0210 (red line on the chart) and take profit at the price of 1.0166. However, pressure will return only after an unsuccessful attempt to consolidate at weekly highs.
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 1.0250, but the MACD line should be in the overbought area, as only by that will the market reverse to 1.0210 and 1.0166.
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.
