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Analysis of transactions in the EUR / USD pair
EUR / USD did not rally on Thursday even though there was a signal to buy that coincided with the MACD line going up from zero. Instead, it went down 10 pips amid a signal to sell that appeared during the time that the MACD line was at the overbought area. Another buy signal emerged in the afternoon, but the bulls failed again to hit a new local high.
The latest ECB minutes did not push euro up because the contents generally confirmed the central bank's dovish stance on monetary policy. But this morning the currency may increase, if ECB chief Christine Lagarde addresses inflation. In the afternoon though EUR / USD may decrease again, if the US releases a strong labor market report. Good performance in the indicator will undoubtedly raise demand for dollar.
For long positions:
Open a long position when euro reaches 1.1557 (green line on the chart) and take profit at 1.1583. However, there is little chance that price will increase today, even amid positive statements from the ECB.
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 1.1541, but the MACD line should be in the oversold area, as only by that will the market reverse to 1.1557 and 1.1583.
For short positions:
Open a short position when euro reaches 1.1541 (red line on the chart) and take profit at 1.1510. Pressure will continue if the US releases a strong labor market report. But before selling, make sure that the MACD line is below zero, or is starting to move down from it.
Euro could also be sold at 1.1557, but the MACD line should be in the overbought area, as only by that will the market reverse to 1.1541 and 1.1510.
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 did not rise on Thursday morning even though there was a signal to buy that coincided with the MACD line going up from zero. Instead, it went down 20 pips amid a signal to sell that appeared during the time that the MACD line was at the overbought area. In the afternoon, another signal to buy appeared, and this time it provoked a 20-pip increase in the pair. Shortly after, it decreased amid another signal to sell in the market.
Pound may rise this morning due to the Bank of England minutes of the meeting. But in the afternoon, the situation may change, especially if the US releases a strong labor market report. Good performance in the indicator will undoubtedly raise demand for dollar.
For long positions:
Open a long position when pound reaches 1.3614 (green line on the chart) and take profit at 1.3664 (thicker green line on the chart). Price may rise in the morning due to the Bank of England minutes of the meeting. 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 1.3585, but the MACD line should be in the oversold area, as only by that will the market reverse to 1.3614 and 1.3664.
For short positions:
Open a short position when pound reaches 1.3585 (red line on the chart) and take profit at 1.3535. Pressure will return if the US releases a strong labor market report. But before selling, make sure that the MACD line is below zero, or is starting to move down from it.
The pair could also be sold at 1.3614, but the MACD line should be in the overbought area, as only by that will the market reverse to 1.3585 and 1.3535.
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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