Analysis of transactions in the EUR / USD pair
Two signals appeared in EUR / USD yesterday. The first one is to sell at 1.2123, however, even if at that time the MACD line was in the negative zone, the euro did not fall sharply in the market. Fortunately, after the release of weak retail sales in Germany, the quote tested 1.2123 again, and it led to a 30-pip drop towards 1.2089.
Trading recommendations for February 2
A report on EU 4th quarter GDP will be released today, and its results will certainly influence market dynamics and sentiment. A bad data will increase pressure on the euro and resume the doward trend in the market, while a good data will lead to a correction towards 1.2135.
For long positions:
Buy the euro when the quote reaches 1.21091 (green line on the chart), and then take profit around the level of 1.2135. EUR / USD will rally if there is good economic data from the EU.
But keep in mind that before buying, the MACD line should be above zero and is starting to rise from it.
For short positions:
Sell the euro after the quote reaches 1.2072 (red line on the chart), and then take profit at the level of 1.2030. EUR / USD will trade downwards if there is bad economic data from the EU.
Of course, before selling, it is important to make sure that the MACD line is below zero and is starting to move down from it.
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 decisions based on the current market situation is an inherently losing strategy for an intraday trader.
Analysis of transactions in the GBP / USD pair
Four signals appeared in GBP / USD yesterday. The first one is to buy at 1.3744, which turned out profitable since during that time, the MACD line was entering the positive zone. However, the second test of the level led to losses, as the quote failed to break above the yearly high.
Meanwhile, the second signal was to sell at 1.3720, but it had to be ignored because during that time, the MACD line was in the oversold area. Its second test, however, coincided with the MACD moving to the sell zone, so the pound was able to decline by more than 60 pips in the market, thereby compensating the losses earlier.
Trading recommendations for February 2
The Bank of England will publish its report today, and it will include detailed results of negative interest rates to the economy.
For long positions:
Buy the pound when the quote reaches 1.3703 (green line on the chart), and then take profit at the level of 1.3754 (thicker green line on the chart).
Keep in mind that before buying, make sure that the MACD line is above zero and is starting to rise from it.
For short positions:
Sell the pound after the quote reaches 1.3678 (red line on the chart), and then take profit at the level of 1.3623. GBP / USD will collapse even lower if the quote consolidates below the lower border of the sideways channel.
But keep in mind that before selling, make sure that the MACD line is below zero and is starting to move down from it.
What's on the chart:
The thin green line is the key level at which you can place long positions in the GBP/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 GBP/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 decisions based on the current market situation is an inherently losing strategy for an intraday trader.