Analysis of transactions in the EUR / USD pair
Weak data from Germany put pressure on euro, but the sell signals that appeared had to be ignored because the MACD line was at the oversold area. Then, a better-than-expected figure on EU investor confidence pulled the currency up, which set off a buy signal in the market. And surprisingly, euro rose 20 pips even though the MACD line was at the overbought area.
Trading recommendations for June 8
Pay attention to the upcoming EU statistics because they will have a significant impact on the market. These are industrial production in Germany, foreign trade balance in Italy, business sentiment in both Germany and the whole Euro area and EU 1st quarter GDP. Strong figures will push euro up, while lower-than-expected data will put pressure on the currency. Meanwhile, US data on small business optimism and foreign trade balance are unlikely to affect the market, even if they turn out much better than projected.
For long positions:
Enter a long position when the quote reaches 1.2205 (green line on the chart), and then take profit around the level of 1.2251. 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 1.2166 (red line on the chart), and then take profit at the level of 1.2116. 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
Pound dipped yesterday, partly due to another increase in COVID-19 cases. It formed a sell signal in the market, but the decline that happened was no more than 15 pips. Then, in the afternoon, a buy signal appeared, however, it had to be ignored because the MACD line was at the overbought area.
Trading recommendations for June 8
Pound will trade sideways today because there are no UK statistics scheduled for release. But in the coming days, the market will be shaken amid issues over Brexit, particularly on the non-compliance of UK with some of the agreements. Representatives from UK and EU will meet tomorrow to try to resolve the problem.
On a different note, US data on small business optimism and foreign trade balance will be released this afternoon, but they are unlikely to affect the market, even if they turn out much better than projected.
For long positions:
Enter a long position when the quote reaches 1.4177 (green line on the chart), and then take profit at the level of 1.4238 (thicker green line on the chart). Pound will trade upwards if the EU does not proceed with its plans on imposing punitive measures against UK. 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 1.4146 (red line on the chart), and then take profit at the level of 1.4099. Pound will drop lower if the disagreement over Brexit is not resolved and if the US releases a strong economic report. 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.
