Analysis and trading recommendations for the EUR/USD and GBP/USD pairs on June 2

Analysis of transactions in the EUR / USD pair

A signal to buy appeared in the market yesterday. However, it had to be ignored because it came when the MACD line was at the overbought area. Having the indicator there significantly limited the upward potential of euro.

Trading recommendations for June 2

Strong US data, plus the statements from the Federal Reserve, limited the upward potential of euro yesterday. Today, statistics on EU producer prices will be released, but it is unlikely to affect the market. Only hints of a future policy change from the European Central Bank will bring demand back to euro.

For long positions:

Enter a long position when the quote reaches 1.2235 (green line on the chart), and then take profit around the level of 1.2305. Euro will trade upwards if the EU publishes strong economic reports, and if the ECB hints at a future policy change. 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 1.2206 (red line on the chart), and then take profit at the level of 1.2133. Euro will decline if the ECB does not announce a future policy change. 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

Three sell signals appeared in the market yesterday, but the first two had to be ignored because they came when the MACD line was at the oversold area. Having the indicator there limits the downward potential of the currency. Fortunately, when the third signal appeared, the MACD line was moving down from zero, so pound was able to decline by 50 pips.

Trading recommendations for June 2

The macroeconomic reports that were published yesterday put pressure on the pound. And today, it will again be driven by data from the UK, particularly on lending and money supply. If the figures turn out much better than expected, pound will jump very sharply. If not, the currency will continue to decline.

In the afternoon, the Federal Reserve will publish its Beige Book, but it will not have significant effects on the market.

For long positions:

Enter a long position when the quote reaches 1.4169 (green line on the chart), and then take profit at the level of 1.4238 (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 1.4139 (red line on the chart), and then take profit at the level of 1.4093. 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.