FX.co ★ Analysis and trading tips for EUR/USD on June 28

Analysis of transactions in the EUR / USD pair

EUR/USD hitting 1.0569 prompted a buy signal in the market. Coincidentally, the MACD line just started to move above zero, so the pair rose by more than 20 pips. Most likely, the market was influenced by the speech of ECB representatives. No other signal appeared for the rest of the day.

Yesterday's speech of ECB chief Lagarde had little effect on the market, so volatility remained low in EUR/USD. Meanwhile, data on orders for durable goods and pending sales in the US real estate market supported dollar, but did not lead to a very sharp price increase.

Today, an important statistics will be released, that is, a report on consumer climate in Germany. This may help buyer cope with the resistance level of 1.0590. Also expected today are the speeches of ECB President Christine Lagarde and her colleagues Philip Lane and Fabio Panetta. Any hints of a more active fight against inflation will help buyers resume the growth of the pair, especially since in the afternoon, there is nothing that would provide significant support to the dollar. The upcoming data on US foreign trade balance and consumer confidence will have little impact on the market, so it is more ideal to take long positions, counting on the resumption of the uptrend of the pair, most likely towards new weekly highs.

For long positions:

Buy euro when the quote reaches 1.0590 (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 1.0565, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0590 and 1.0637.

For short positions:

Sell euro when the quote reaches 1.0565 (red line on the chart) and take profit at the price of 1.0518. Pressure will return if Germany reports weak economic data and if the attempt to reach new weekly highs fail. Nevertheless, 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 1.0590, but the MACD line should be in the overbought area, as only by that will the market reverse to 1.0565 and 1.0518.

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.