Analysis of transactions in the EUR / USD pair
A signal to buy appeared in the market yesterday. However, traders had to ignore it because the MACD line was at the overbought area, which significantly limits the upward potential of the pound. No other signal appeared for the rest of the day.
Trading recommendations for May 28
The macro statistics released yesterday brought euro to a sideways channel. But the reports that will be published today may push the currency out of the range, although it will only be up to the local highs.
For long positions:
Enter a long position when the quote reaches 1.2211 (green line on the chart), and then take profit around the level of 1.2266. 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 1.2172 (red line on the chart), and then take profit at the level of 1.2112. Euro will decline more if France releases weak economic reports. 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
Pound soared yesterday when one member of the Bank of England said interest rates may hike next year. Such formed a sell signal in the market, however, it occurred at a time that the MACD line was at the oversold area, so traders had to ignore it.
The same thing happened at the first buy signal. The MACD line was at the overbought area, so traders had to ignore it. Fortunately by afternoon, the indicator had moved slightly above zero, so the pound was able to climb by 40 pips. It reached 1.4175, where a sell signal developed. The sell-offs pushed the pound down by 20 pips.
Trading recommendations for May 28
Pay attention to the upcoming statements from the Bank of England as those will certainly affect the market. Then, in the afternoon, the US will release reports on expenses, incomes, consumer sentiment and inflation expectations, which, if turns out much better than expected, will put pressure on the pound.
For long positions:
Enter a long position when the quote reaches 1.4208 (green line on the chart), and then take profit at the level of 1.4279 (thicker green line on the chart). Positive statements from the Bank of England may push the pound to new local highs. 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 1.4171 (red line on the chart), and then take profit at the level of 1.4102. 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.