Analysis of transactions in the EUR / USD pair
EUR / USD surprisingly rose last Friday even though the MACD line was far away from zero. In addition to that, it hit the resistance level, which put out a signal to sell in the market. But bearish transactions only led to losses, as the pair continued to climb the whole day.
Most of the data released last Friday did not affect the market much because they generally coincided with the forecasts. But the report on EU foreign trade balance was slightly better, so it became a reference for buyers. Then, in the afternoon a weaker-than-expected data on US consumer sentiment was released, so demand for euro rose higher.
The market will most likely continue the bullish trend since there are no EU statistics scheduled for today. And in the afternoon, there is only a report on US manufacturing, which is expected to show a decline. If this happens, dollar will decline while EUR / USD will climb higher.
For long positions:
Open a long position when euro reaches 1.1800 (green line on the chart), and then take profit at the level of 1.1840. EUR / USD may continue the bullish trend that started last Friday. 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 1.1779 and 1.1748, but the MACD indicator line must be in the oversold area in order to bring about a market reversal to 1.1800 and 1.1840.
For short positions:
Open a short position when euro reaches 1.1779 (red line on the chart), and then take profit at the level of 1.1748. A decline will occur if the pair fails to breakdown last week's high and if US publishes strong economic indicators. 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 1.1800 and 1.1840, but the MACD line must be in the overbought area in order to provoke a market reversal to 1.1779.
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
GBP / USD dropped by 10-12 pips last Friday, thanks to the signal to sell that coincided with the MACD line going down from zero. But immediately after that, the pair turned around and climbed up again. Sadly, by that time, the indicator was already far away from zero, so the signal to buy had to be ignored.
Most likely, pressure will remain in the market this morning as there are no UK statistics scheduled to be published. But in the afternoon, demand may recover if UK publishes strong economic indicators and US releases weak reports on the manufacturing sector.
For long positions:
Open a long position when pound reaches 1.3860 (green line on the chart), and then take profit at the level of 1.3895 (thicker green line on the chart). GBP / USD may continue the bullish trend that started last Friday. 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 1.3839 and 1.3807, but the MACD line should be in the oversold area in order to set off a market reversal to 1.3860 and 1.3895.
For short positions:
Open a short position when pound reaches 1.3839 (red line on the chart), and then take profit at the level of 1.3807. A decline will occur if the pair fails to breakdown last week's high. 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 1.3860 and 1.3895, but the MACD line should be in the overbought area in order to trigger a market reversal to 1.3839 and 1.3807.
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.