FX.co ★ Analysis and trading tips for EUR/USD on August 2

Analysis of transactions in the EUR / USD pair

There seems to be nothing that could push EUR/USD up today. The lack of statistics is a minus for the pair, especially since everyone is convinced that the Fed will now become less aggressive in terms of monetary policy. But if the ECB shows that it will continue to raise rates, further growth will be seen in the pair.

The US will release a report on the level of vacancies and labor turnover, but it is of little interest. The speech of FOMC member Charles Evans, meanwhile, could lead to a small burst of volatility.

For long positions:

Buy euro when the quote reaches 1.0279 (green line on the chart) and take profit at the price of 1.0325. There is a chance for a rally today, but only if the pair stays at the highs reached in the morning.

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 1.0233, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0279 and 1.0325.

For short positions:

Sell euro when the quote reaches 1.0233 (red line on the chart) and take profit at the price of 1.0180. Pressure will return if the attempt to hit new local highs fail and if reports on the US economy are better than expected.

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 1.0279, but the MACD line should be in the overbought area, as only by that will the market reverse to 1.0233 and 1.0180.

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.