Euro and pound fell this morning despite reports indicating that Germany's economy and the UK real estate market are in good shape. Perhaps, market players are more concerned with the upcoming speech of Fed Chairman Jerome Powell, which will help clarify how officials plan to raise interest rates and to what levels. If aggression persists, demand for US dollar will return, which will cause another decline in both euro and pound. But if Powell buckles under the pressure from Democrats and doesn't go "over the top" with interest rates, keeping the possibility of a soft landing scenario for the economy, risk appetite will return, which will allow traders to buy and wait for the monthly highs to be updated.
EUR/USD
For long positions:
Buy euro when the quote reaches 1.0675 (green line on the chart) and take profit at the price of 1.0675.
Euro can also be bought at 1.0655, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0675 and 1.0710.
For short positions:
Sell euro when the quote reaches 1.0655 (red line on the chart) and take profit at the price of 1.0627.
Euro can also be sold at 1.0675, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0655 and 1.0627.
GBP/USD
For long positions:
Buy pound when the quote reaches 1.2025 (green line on the chart) and take profit at the price of 1.2061 (thicker green line on the chart).
Pound can also be bought at 1.1999, but the MACD line should be in the oversold area as only by that will the market reverse to 1.2025 and 1.2061.
For short positions:
Sell pound when the quote reaches 1.1999 (red line on the chart) and take profit at the price of 1.1958.
Pound can also be sold at 1.2025, but the MACD line should be in the overbought area as only by that will the market reverse to 1.1999 and 1.1958.