FX.co ★ Analysis and trading recommendations for the EUR/USD and GBP/USD pairs on June 14

Analysis of transactions in the EUR / USD pair

Euro slipped last Friday because of the firm dovish stance of the European Central Bank. Aside from that, US released strong macro statistics, which brought demand back to dollar. All this formed a sell signal in the market, but it had to be ignored because it came when the MACD line was at the oversold area.

Trading recommendations for June 14

Pay attention to the upcoming macro statistics as those will affect the market. For example, better-than-expected data on Eurozone industrial output may lead to a rally, while a weak figure may set off another decline in euro. Statements from ECB member Isabel Schnabel may also put pressure on the currency.

For long positions:

Enter a long position when the quote reaches 1.2116 (green line on the chart), and then take profit around the level of 1.2161. Euro will rise if the Euro area publishes good data on industrial output. 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 1.2085 (red line on the chart), and then take profit at the level of 1.2045. Euro will decline if the EU publishes 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

Several signals appeared in the market last Friday, but only few were successful. The first three sell signals had to be ignored because they came when the MACD line was at the oversold area. Meanwhile, the fourth signal was successful because by that time, the MACD line was already going down from zero. Pound declined by more than 50 pips.

The subsequent buy signal was also successful.

Trading recommendations for June 14

The market is expected to remain calm today because the only interesting event is the speech of Bank of England President Andrew Bailey. However, the statements are unlikely to affect pound, which has long been locked in a horizontal channel.

For long positions:

Enter a long position when the quote reaches 1.4125 (green line on the chart), and then take profit at the level of 1.4163 (thicker green line on the chart). Pound will rise if the Bank of England 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 1.4102 (red line on the chart), and then take profit at the level of 1.4073. 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.