Analysis of transactions in the EUR / USD pair
A signal to sell appeared in the market on Wednesday, which provoked a 15-pip decline in EUR / USD. Apparently, the signal came when the MACD line was going down from zero, so traders were able to open short positions in the market. However, price returned to its previous level immediately after the downward movement. A similar scenario occurred in the afternoon, but this time the decline was 25 pips.
Initially, good PMI data from the Euro area supported EUR / USD yesterday, but it was offset by the disappointing report on retail sales. Strong service data from US also put pressure on the currency, but the employment report from ADP spoiled the rise in dollar.
Today, the market will move depending on the reports from France and Germany. Good performance, albeit temporary, will lead to increased demand for risk assets. There will also be a report on the US labor market, which could provoke further recovery in the pair if the data diverges from the forecasts.
For long positions:
Open a long position when euro reaches 1.1855 (green line on the chart), and then take profit at the level of 1.1909. Demand will increase if France and Germany publish good economic reports. But before buying, make sure that the MACD line is above zero, or is starting to rise from it.
It is also possible to buy at 1.1827 and 1.1776, but the MACD indicator line must be in the oversold area in order to bring about a market reversal to 1.1855.
For short positions:
Open a short position when euro reaches 1.1827 (red line on the chart), and then take profit at the level of 1.1776. A decline will occur if the Euro area releases weak economic reports. But before selling, make sure that the MACD line is below zero, or is starting to move down from it.
It is also possible to sell at 1.1855 and 1.1909, but the MACD line must be in the overbought area in order to provoke a market reversal to 1.1827.
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 signal to sell appeared in the market on Wednesday, which provoked a 20-pip decline in GBP / USD. Apparently, the signal came when the MACD line was at the overbought area, so traders were able to open short positions in the market. Then, in the afternoon, there was a signal to buy the pair, which coincided with the indicator moving up from zero. This led to a 20 pips rise in the pair, but immediately after it the price went down again. Obviously, the slow down in UK PMI negatively affected pound, not allowing it to recover properly yesterday. Strong data from US also put pressure on the currency.
Today, the pair will move depending on the policy decisions of the Bank of England. But many do not expect to see any changes on it, so pound will most likely continue trading downwards. There will also be a report on the US labor market, which could provoke a slight recovery in the pair if the data diverges from the forecasts.
For long positions:
Open a long position when pound reaches 1.3912 (green line on the chart), and then take profit at the level of 1.3975 (thicker green line on the chart). GBP / USD will climb higher if the Bank of England hints at a future change on monetary policy. But before buying, make sure that the MACD line is above zero, or is starting to rise from it.
It is also possible to buy at 1.3874 and 1.3810, but the MACD line should be in the oversold area in order to set off a market reversal to 1.3912.
For short positions:
Open a short position when pound reaches 1.3874 (red line on the chart), and then take profit at the level of 1.3810. A decline will occur if the Bank of England says it will continue to adhere to a soft monetary policy. But before selling, make sure that the MACD line is below zero, or is starting to move down from it.
It is also possible to sell at 1.3912 and 1.3975, but the MACD line should be in the overbought area in order to trigger a market reversal to 1.3874.
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.