Analysis of transactions in the EUR / USD pair

Euro tested 0.9926 at the time when the MACD was far from zero, which limited the downside potential of the pair. Sometime later, another test occurred, but this time the quote ended up rising by 13 pips. It then tested 0.9959 in the afternoon, but the MACD line was again far from zero, limiting the upside potential of the pair.

The lack of statistics in the Euro area led to a decline in EUR/USD yesterday morning, but it was offset by weak data on the US economy released in the afternoon. Most likely, another decrease will be seen today after the release of reports on Germany's GDP, business expectations, present situation and business climate. The minutes of the ECB meeting will not affect the market as no one expects serious discrepancies with the statements made by members during the meeting. In the afternoon, another set of important reports will be coming in the US, namely the GDP data and weekly jobless claims. But the start of the Jackson Hole symposium will be much more interesting as the meeting may determine the further direction of the pair.

For long positions:

Buy euro when the quote reaches 1.0037 (green line on the chart) and take profit at the price of 1.0094. Demand will rise if economic reports from Germany 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 0.9987, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0037 and 1.0094.

For short positions:

Sell euro when the quote reaches 0.9987 (red line on the chart) and take profit at the price of 0.9916. Pressure will return if US statistics fell short of forecasts.

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 1.0037, but the MACD line should be in the overbought area, as only by that will the market reverse to 0.9987 and 0.9916.

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.

Relevance up to 08:00 2022-08-26 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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