Analysis of transactions in the EUR / USD pair
Several signals appeared on the market yesterday. However, none of them were very successful. In fact, the first signal, which is to sell at 1.1870, had to be ignored because the MACD line, during that time, was in the oversold zone. Then, in the afternoon, there was a signal to buy at 1.1906. Although the MACD line, at that time, was in a positive zone, the EUR / USD pair did not increase very much, but only by about 16 pips. Apparently, the optimism of euro bulls faded away very quickly.
Trading recommendations for March 11
Strong industrial production report from France supported the euro yesterday. Meanwhile, the latest US CPI did not lead to the further strengthening of the dollar, as the indicators completely coincided with the forecasts and failed to surprise the markets.
Today, the attention of investors will be focused on the meeting of the European Central Bank and on the decisions taken there. If the European regulator decides to make significant changes on its monetary policy, the euro will most certainly rise in the market. But if the policy remains unchanged, the position of risk assets will weaken.
Then, in the afternoon, reports on US jobless claims will be published, which will affect the rate of the US dollar.
For long positions:
Buy the euro when the quote reaches 1.1941 (green line on the chart), and then take profit around the level of 1.1995. EUR / USD will trade upwards if the ECB decides to expand its bond buying program.
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 1.1908 (red line on the chart), and then take profit at the level of 1.1836. Pressure on the euro will return if the ECB announces that it will maintain its currency monetary policy.
But before selling, be 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
Three signals appeared on the market yesterday. The first one was to sell the pound at 1.3855. However, it had to be ignored because the MACD line, during that time, was in the oversold zone. Such a scenario significantly limited the downward potential of the pair.
Then, afterwards, there was a rapid growth above 1.3896, but during the first test of this area, the MACD line moved into the overbought area, so the signal had to be ignored as well. Only in the afternoon, when the pair tested the level again, did the signal become successful. By that time, the MACD line had moved into the positive zone, so the pair was able to climb up by approximately 40 pips.
Trading recommendations for March 11
Today, particular attention should be given to technical support and resistance levels, on which the further direction of the pair depends. More important data will also be released in the afternoon, for example, initial jobless claims in the US. Its data will certainly affect the dollar's position in the market.
For long positions:
Buy the pound when the quote reaches 1.3949 (green line on the chart), and then take profit at the level of 1.4008 (thicker green line on the chart). Price will climb higher if the pound breaks above 1.3950, but there is very little chance for that.
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 1.3912 (red line on the chart), and then take profit at the level of 1.3844. It is best to open short positions in the market because the trend in GBP / USD is bearish. Also, good data on the US labor market will strengthen the position of the dollar.
Of course, when 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.