Analysis of transactions in the EUR / USD pair
A signal to sell appeared in the market on Thursday, which provoked a 20-pip decline in EUR / USD. Apparently, the signal came when the MACD line was at the overbought area, so traders were able to open short positions in the market. There were no other signals for the rest of the day.
Data from the Euro area, which were released yesterday, failed to support euro even though the figures do not differ much from the forecasts. Meanwhile, the strong labor market report from US pushed demand for dollar up, which led to the further decline of EUR / USD.
Today, the market will move depending on the employment report from US. Bad data will lead to an increase in the pair, while good data will set off another decline. There will also be reports on German industrial production and foreign trade balance in France, but they are unlikely to affect the market.
For long positions:
Open a long position when euro reaches 1.1837 (green line on the chart), and then take profit at the level of 1.1879. Demand will increase if the US publishes a weak labor market 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 1.1815 and 1.1776, but the MACD indicator line must be in the oversold area in order to bring about a market reversal to 1.1837.
For short positions:
Open a short position when euro reaches 1.1815 (red line on the chart), and then take profit at the level of 1.1776. A decline will occur if the US releases strong economic reports. 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 1.1837 and 1.1879, but the MACD line must be in the overbought area in order to provoke a market reversal to 1.1815.
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
There were several market signals on Thursday, but all of them had to be ignored because they came when the MACD line was at an unprofitable area. For example, when there was a signal to buy euro, the indicator was at an area far away from zero, which significantly limited the upward potential of the currency. Then, a similar scenario occurred in the afternoon, but this time the indicator was below zero. There were no other signals for the rest of the day.
Surprisingly, the decision of the Bank of England did not affect the direction of the market, but it did allow buyers to maintain their positions. The members unanimously voted to keep the rates unchanged, but hinted at potential rate hikes within 2-3 years.
Today, the pair will move depending on the employment report from US. Bad data will push pound up, while good data will push it down to weekly lows.
For long positions:
Open a long position when pound reaches 1.3933 (green line on the chart), and then take profit at the level of 1.3988 (thicker green line on the chart). GBP / USD will climb higher if the US publishes a weak labor market 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 1.3912 and 1.3855, but the MACD line should be in the oversold area in order to set off a market reversal to 1.3933.
For short positions:
Open a short position when pound reaches 1.3912 (red line on the chart), and then take profit at the level of 1.3855. A decline will occur if the US releases strong economic reports. 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 1.3933 and 1.3988, but the MACD line should be in the overbought area in order to trigger a market reversal to 1.3912.
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.
