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29.02.202413:36 Forex Analysis & Reviews: Analysis and trading tips for EUR/USD on February 29 (US session)

Analysis of transactions and trading tips on EUR/USD

The test of 1.0847 occurred during the rise of the MACD line from zero. This provoked a buy signal, but no strong upward move took place despite fairly good statistics for the eurozone, particularly in terms of inflation and unemployment rate.

Ahead lies data on personal consumption expenditure, household spending, income level, jobless claims, Chicago PMI, and pending home sales in the US. Positive statistics will lead to a rise in dollar demand and a surge in market volatility. Statements from FOMC members Raphael Bostic and Loretta Mester could also fuel further growth in USD.

Exchange Rates 29.02.2024 analysis

For long positions:

Buy when euro hits 1.0855 (green line on the chart) and take profit at the price of 1.0884. Growth will occur after very weak data from the US and a firm position from Fed representatives.

When buying, ensure that the MACD line lies above zero or rises from it. Euro can also be bought after two consecutive price tests of 1.0837, but the MACD line should be in the oversold area, as only by that will the market reverse to 1.0855 and 1.0884.

For short positions:

Sell when euro reaches 1.0837 (red line on the chart) and take profit at the price of 1.0809 Pressure will return in the case of strong data from the US and an unsuccessful surge above the daily high.

When selling, make sure that the MACD line lies below zero or drops down from it. Euro can also be sold after two consecutive price tests of 1.0855, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0837 and 1.0809.

Exchange Rates 29.02.2024 analysis

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.

*El análisis de mercado publicado aquí tiene la finalidad de incrementar su conocimiento, más no darle instrucciones para realizar una operación.

Jakub Novak,
Analytical expert of InstaSpot
© 2007-2024
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