How The EUR/USD Looks In The Short And In The Long Positions?

EUR/USD Trade Analysis The Euro tested 0.9998 when the MACD was below zero, which limits the pair’s downside potential. Some time later, it tested this level again, but this time the MACD line is above zero, so the upside potential is limited. This happened after testing 1.00 3. Although the strong rise in the Eurozone Consumer Price Index is not a surprise, it does hurt the euro’s bullish outlook this morning. Then in the afternoon, the dollar was hit by weak jobs data from the ADP, which suggests the Fed-led rate hikes are hurting the labor market. Today, there are several reports to be published, namely the volume of retail trade in Germany, the index of business activity in the manufacturing sector and the development of the unemployment rate in the euro area. . Good numbers will have buyers trying to update the weekly highs. But in the afternoon, the focus will shift to US jobless claims data, the ISM manufacturing index and FOMC member Raphael Bostic’s speech. For long positions: Buy euros when the quote reaches 1.0026 (green line on the chart) and take profit at the price of 1.0081. A rally will ensue if Eurozone statistics exceed expectations. Note that when buying, the MACD line must be above zero or start rising from there. The Euro can also be bought at 1,0005, but the MACD line must be in the oversold zone because then the market will reverse at 1.0026 and 1.0081. For short positions: Sell Euro when the quote reaches 1,0005 (red line on the chart) and take profit at 0.9959. Pressure will return if the eurozone releases weak economic statistics. Buyers’ failure to update yesterday’s high will also end the upside correction. Note that when selling, the MACD line must be below zero or start going down from there. The Euro could also be sold at 1.0026, but the MACD should be in the overbought zone, as only then will the market reverse at 1,0005 and 0.9959.

James Rogers

Learn More →

Dodaj komentarz

Twój adres e-mail nie zostanie opublikowany.