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Analysis of transactions in the EUR / USD pair
Euro initially rose by 15 pips on Tuesday as traders managed to set up long positions, thanks to the signal to buy that appeared when the MACD line was at the oversold area.
Then, immediately after that, the price turned around and provoked a sell signal, but traders had to ignore it since the indicator was far from zero.
The reason why EUR / USD rose in the morning is the slight increase in EU employment levels. But by afternoon, the pair declined despite a sharp drop in US retail trade data. Euro even reached new local lows.
And today, a report on EU inflation will be released, which will most likely provoke another decline in the market provided that the figure comes out the same or worse as expected. Then, in the afternoon, the Fed will publish its minutes of the meeting, which many expect to contain similar clauses as the last discussions.
For long positions:
Open a long position when euro reaches 1.1732 (green line on the chart), and then take profit at the level of 1.1772. EUR / USD will climb higher if the Euro area publishes a better than expected inflation report. 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 1.1708 and 1.1670, but the MACD indicator line must be in the oversold area in order to bring about a market reversal to 1.1732 and 1.1772.
For short positions:
Open a short position when euro reaches 1.1708 (red line on the chart), and then take profit at the level of 1.1670. A decline will occur in the event of poor data on UK inflation and strong Fed protocols. 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 1.1732 and 1.1772, but the MACD line must be in the overbought area in order to provoke a market reversal to 1.1708.
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
Pound fell by 25 pips yesterday as traders managed to set up short positions, thanks to the signal to sell that appeared when the MACD line was going down from zero. At the same time, there were no other market signals for the rest of the day.
The weak employment data that UK released was the main reason for the decline, followed by the US retail trade report and statements from Fed Chairman Jerome Powell. And most likely, this bearish sentiment will continue amid inflation statistics from UK. But if the indicator turns out to be better than expected, there may be an upward correction in the market. Then, in the afternoon, the Fed will publish its minutes of the meeting, which many expect to contain similar clauses as the last discussions.
For long positions:
Open a long position when pound reaches 1.3764 (green line on the chart), and then take profit at the level of 1.3812 (thicker green line on the chart). GBP / USD will trade higher if UK reports strong statistics on inflation. 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 1.3731 and 1.3684, but the MACD line should be in the oversold area in order to set off a market reversal to 1.3764 and 1.3812.
For short positions:
Open a short position when pound reaches 1.3731 (red line on the chart), and then take profit at the level of 1.3684. A decline will occur if UK publishes weak inflationary 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 1.3764 and 1.3812, but the MACD line should be in the overbought area in order to trigger a market reversal to 1.3731 and 1.3684.
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.
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