27.02.202409:11 Forex Analysis & Reviews: Analysis and trading tips for EUR/USD on February 27

Analysis of transactions and tips for trading EUR/USD

Further growth became limited because the test of 1.0857 occurred during the sharp rise of the MACD line from zero. Shortly after, another test took place, but this time the MACD line moved down from the overbought area, provoking a sell signal. This resulted in a price decrease of about 20 pips.

Euro rose in price as ECB President Christine Lagarde, during her speech, reiterated that they will not rush to lower interest rates because despite the decline in inflation, wages may see another increase, which will reverse progress.

Today, market players should pay attention to reports on the leading consumer climate index in Germany, changes in the M3 money supply in the Eurozone, and the volume of private sector lending. The speech by ECB Executive Board member Frank Elderson will complement the overall picture, and euro may continue to rise with good data.

For long positions:

Buy when euro hits 1.0857 (green line on the chart) and take profit at the price of 1.0884. Growth will occur after positive lending data.

When buying, make sure that the MACD line lies above zero or rises from it. Euro can also be bought after two consecutive price tests of 1.0841, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0857 and 1.0884.

For short positions:

Sell when euro reaches 1.0841 (red line on the chart) and take profit at the price of 1.0817. Pressure will increase in the case of unsuccessful bullish activity around the daily high.

When selling, make sure that the MACD line lies under zero or drops down from it. Euro can also be sold after two consecutive price tests of 1.0857, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0841 and 1.0817.

What's on the chart:

Thin green line - entry price at which you can buy EUR/USD

Thick green line - estimated price where you can set Take-Profit (TP) or manually fix profits, as further growth above this level is unlikely.

Thin red line - entry price at which you can sell EUR/USD

Thick red line - estimated price where you can set Take-Profit (TP) or manually fix profits, as further decline below this level is unlikely.

MACD line- it is important to be guided by overbought and oversold areas when entering the market

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.