FX.co ★ Analysis and trading recommendations for the EUR/USD and GBP/USD pairs on June 29

Analysis of transactions in the EUR / USD pair

A sell signal appeared in the market on Monday, but it had to be ignored because it came when the MACD line was at the oversold area. Such a scenario limited the downward potential of EUR/USD.

Trading recommendations for June 29

Today's movement in EUR / USD will depend on the reports on Eurozone consumer confidence and CPI in Germany. Strong figures could lead to a rally, while weaker-than-expected data may induce another decline in the pair. Then, in the afternoon, ECB President Christine Lagarde will deliver a speech, and at the same time the US will also release a report on consumer confidence, which could strengthen dollar if the data exceeds forecasts.

For long positions:

Open a long position when euro reaches 1.1930 (green line on the chart), and then take profit around the level of 1.1974. EUR / USD may rise if there is a serious acceleration of inflationary pressures in Germany, as such could force the European Central Bank to reconsider tightening the monetary policy. But before buying, make sure that the MACD line is above zero, or is starting to rise from it.

For short positions:

Open a short position when euro reaches 1.1904 (red line on the chart), and then take profit at the level of 1.1860. Further decline will occur if the Eurozone releases weak data on consumer confidence. 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

Four buy signals appeared in the market on Monday, however, all of them were unsuccessful. In fact, the very first one had to be ignored because it came when the MACD line was at the overbought area. Meanwhile, the succeeding signals appeared when the indicator was going up from zero, but pound was not able to undergo any upward movement.

Trading recommendations for June 29

Today's movement in GBP / USD will depend on the statements of Bank of England Chief Economist Andy Haldane, who is scheduled to deliver a speech this morning. But most likely, it will result in a price increase. Aside from that, a report on M4 money supply will also be published, but the data is unlikely to have a significant impact on the market. Then, in the afternoon, there will be a speech from the Federal Reserve, followed by data on US consumer confidence.

For long positions:

Open a long position when pound reaches 1.3879 (green line on the chart), and then take profit at the level of 1.3922 (thicker green line on the chart). Growth may occur if UK releases good reports on inflation, and if the Bank of England decides to curtail the PEPP program much earlier than scheduled. But before buying, make sure that the MACD line is above zero, or is starting to rise from it.

For short positions:

Open a short position when pound reaches 1.3857 (red line on the chart), and then take profit at the level of 1.3815. GBP / USD will come under pressure if UK releases weak data on lending. 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.