Analysis of transactions in the EUR / USD pair
There were several market signals on Tuesday, but only those that appeared in the afternoon were successful. As such, the first signal to sell did not end up as expected even though the MACD line was going down from zero. But by afternoon, after the EU released weak economic reports, EUR / USD declined by 20 pips.
It was the recently published data on business sentiment that pushed the pair down yesterday. Then, the report on US labor productivity exacerbated the situation.
Today, the market will move depending on the reports on Germany, Italy and US inflation. If Germany and Italy release weak CPI data, EUR / USD will drop even lower. But if US reports another increase in inflation, demand for dollar will decrease, which will result in a rally in EUR / USD.
For long positions:
Open a long position when euro reaches 1.1730 (green line on the chart), and then take profit at the level of 1.1768. Demand will increase if the Euro area publishes good inflation data. 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 1.1709 and 1.1666, but the MACD indicator line must be in the oversold area in order to bring about a market reversal to 1.1730 and 1.1768.
For short positions:
Open a short position when euro reaches 1.1709 (red line on the chart), and then take profit at the level of 1.1666. A decline will occur if the Euro area releases weak 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 1.1730 and 1.1768, but the MACD line must be in the overbought area in order to provoke a market reversal to 1.1709.
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 Tuesday, but all of them were not successful because they appeared when the MACD line was at an unprofitable area. For example, when a signal to buy was formed in the market, the indicator was far away from zero, so the upward potential of GBP / USD was limited. This resulted in another sell-off in the pair.
But today there may be an upward correction since there are no UK statistics scheduled to be published. Growth, however, will not last long because by afternoon, US will release a report on inflation, which will most likely lead to an increased demand for dollar and accordingly, a decline in GBP / USD.
For long positions:
Open a long position when pound reaches 1.3839 (green line on the chart), and then take profit at the level of 1.3869 (thicker green line on the chart). 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 1.3822 and 1.3785, but the MACD line should be in the oversold area in order to set off a market reversal to 1.3839 and 1.3869.
For short positions:
Open a short position when pound reaches 1.3822 (red line on the chart), and then take profit at the level of 1.3785. A decline could occur if US reports an increase in inflationary pressures, as such will force the Fed to revise its approach to monetary policy ahead of schedule. 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 1.3839 and 1.3869, but the MACD line should be in the overbought area in order to trigger a market reversal to 1.3822 and 1.3785.
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.
