Analysis of transactions in the EUR / USD pair
Two buy signals appeared in the market yesterday. The first one gave a movement of about 20 pips, while the second one did not give much profit because it appeared close to the end of the day.
Trading recommendations for May 26
Even if Germany's 1st quarter GDP did not put much pressure on the euro, it clearly limited the upward potential of the currency. Fortunately, the indicators in the business sector showed promising improvements, so the euro climbed above the support levels.
Today, euro may hit local highs because of the lack of macro statistics. But the statements from the Federal Reserve, which will come out in the afternoon, may put some pressure on it.
For long positions:
Enter a long position when the quote reaches 1.2272 (green line on the chart), and then take profit around the level of 1.2313. But before buying, make sure that the MACD line is above zero, or is starting to rise from it.
For short positions:
Enter a short position when the quote reaches 1.2247 (red line on the chart), and then take profit at the level of 1.2313. But before selling, make sure that the MACD line is below zero, or 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
A number of signals appeared in the market yesterday. The first one is to buy at 1.4189, which coincided with the time that the MACD line was rising from zero. As a result, pound climbed by as much as 20 pips. Afterwards, the currency dropped and formed a sell signal, but it happened when the MACD line was at the oversold area. Hence, traders had to ignore the signal as the downward potential was limited. Then, when the pound hit 1.4121, another buy signal appeared, and it coincided with the time that the MACD line was moving up from zero. Such pushed GBP / USD up by 15 pips.
Trading recommendations for May 26
Pound plunged yesterday on the news that the EU rejected UK's request to amend the terms of Brexit. And since there are no macro statistics scheduled to be published today, pressure on the pound will continue, especially if bullish traders do not take active action in 1.4173. Statements from the Federal Reserve may also add pressure on GBP.
For long positions:
Enter a long position when the quote reaches 1.4173 (green line on the chart), and then take profit at the level of 1.4210 (thicker green line on the chart). But before buying, make sure that the MACD line is above zero, or is starting to rise from it.
For short positions:
Enter a short position when the quote reaches 1.4152 (red line on the chart), and then take profit at the level of 1.4121. But before selling, make sure that the MACD line is below zero, or 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.