Analysis of transactions in the EUR / USD pair
There was a signal to sell in EUR / USD on Monday, but it surprisingly did not lead to a strong fall even though the MACD line was moving down from zero. And after some time, traders had to close their positions in order to avoid losing profit. There were no other signals for the rest of the day.
In any case, the market remained bearish amid data on EU consumer confidence and German inflation. Both were in line with the forecasts and put pressure on EUR / USD.
Today, there will be CPI reports from France and the Euro area, which may have positive effects in the market. Strong figures in France and Italy's GDP could also lead to a rise in EUR / USD, as will a better employment report from Germany. Then, growth may continue in the afternoon as a decline in US consumer confidence will put pressure on dollar. PMI data from Chicago will also affect the market.
For long positions:
Open a long position when euro reaches 1.1833 (green line on the chart), and then take profit at the level of 1.1878 (thicker green line on the chart). EUR / USD trade upwards if economic data from the Euro area exceed expectations. 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 1.1809 and 1.1765, but the MACD line should be in the oversold area, as only by that will the market reverse to 1.1833 and 1.1878.
For short positions:
Open a short position when euro reaches 1.1809 (red line on the chart), and then take profit at the level of 1.1765. A decline will occur if the Euro area reports weaker inflationary pressures and if both France and Italy publish weak GDP data. 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 1.1833 and 1.1878, but the MACD line should be in the overbought area, as only by that will the market reverse to 1.1809.
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
Initially, there were no market signals in GBP / USD, but in the afternoon, a signal to sell appeared because of activity around 1.3747. And surprisingly, even though the MACD line was going down from zero, there was no major sell-off in the pair. Instead, the market continued its upward correction.
Most likely, pound will remain calm this morning despite reports on UK lending and money supply. But in the afternoon, an increase may be observed as a decline in US consumer confidence will put pressure on dollar. PMI data from Chicago will also affect the market.
For long positions:
Open a long position when pound reaches 1.3803 (green line on the chart), and then take profit at the level of 1.3858 (thicker green line on the chart). It is likely that the pair will continue the bullish trend from last week. 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 1.3674 and 1.3621, but the MACD line should be in the oversold area, as only by that will the market reverse to 1.3715 and 1.3767.
For short positions:
Open a short position when pound reaches 1.3771 (red line on the chart), and then take profit at the level of 1.3717. A decline will occur if the UK releases very weak lending data, but this is unlikely to happen. Also, 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 1.3803 and 1.3858, but the MACD line should be in the overbought area, as only by that will the market reverse to 1.3771 and 1.3717.
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.
