Forex Analysis & Reviews: Analysis and trading tips for EUR/USD on March 21


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. Then, a good market movement arose after the Fed's decision, bringing around 50 pips of profit. The Fed said they would stick to their path of reducing interest rates even though they encountered obstacles on the way to low and stable inflation. This led to a decline in dollar and purchases of euro. The upward trend in EUR/USD will continue today as long as Manufacturing PMI, Service PMI, and Composite PMI data for the eurozone exceed expectations.

For long positions: Buy when euro hits 1.0946 (green line on the chart) and take profit at the price of 1.1003. Growth will occur after very good statistics from Germany and the eurozone, especially in the manufacturing sector. 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 1.0921, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0946 and 1.1003. For short positions: Sell when euro reaches 1.0921 (red line on the chart) and take profit at the price of 1.0875. Pressure will increase in the case of unsuccessful bullish activity around the daily high and weak data. 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 1.0946, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0921 and 1.0875.

Analysis are provided by InstaForex.

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