Analysis of transactions in the EUR / USD pair
Euro rose amid strong economic indicators from Germany. In fact, it led to a good buy signal at 1.2105, which was further supported by the MACD line entering a positive zone. All in all, the euro moved 40 pips up towards 1.2145.
Trading recommendations for January 20
EU will release its latest data on inflation today, and it may lead to a jump in EUR / USD. However, this will only be on the condition that the figure is much better than the forecasts of economists.
Meanwhile in the US, Joe Biden’s inauguration as the new president will take place, which could trigger unrest on Trump supporters. But if all goes well, the focus will shift to Biden’s first speech as president, which could set the future direction of the US dollar.
For long positions:
Buy the euro when the quote reaches 1.2159 (green line on the chart), and then take profit around the level of 1.2198. EUR / USD will rally if Joe Biden announces unprecedented measures to support the US economy.
But keep in mind that before buying, the MACD line should be above zero and is starting to rise from it.
For short positions:
Sell the euro after the quote reaches 1.2130 (red line on the chart), and then take profit at the level of 1.2085. EUR / USD will trade downwards only if the upcoming data from the EU show weak economic indicators.
Of course, before selling, it is important to make sure that the MACD line is below zero and 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
Two buy signals appeared on GBP / USD yesterday. First is at 1.3618, which had to be ignored since at that time, the MACD line was in the overbought zone. Then, after some time, the MACD line finally showed positive growth, so an excellent buy level was again seen.
Trading recommendations for January 20
UK will release its latest data on inflation today, which could result in pound buyers continuing their attempts in pushing the quote towards the yearly highs. However, weaker-than-expected economic indicators will lead to small corrections, but this will also be convenient for new long positions.
Aside from that, the US will hold Joe Biden’s inauguration today, and it could lead to unrest on Trump supporters, which accordingly will result in a weaker dollar position in the market. But in the meantime, everything is still calm, although it is the British pound that has a higher chance of growing today.
For long positions:
Buy the pound when the quote reaches 1.3660 (green line on the chart), and then take profit at the level of 1.3714 (thicker green line on the chart). GBP / USD will trade upwards only if there is good news on UK inflation, or if there is progress in COVID-19 vaccinations.
But keep in mind that before buying, make sure that the MACD line is above zero and is starting to rise from it.
For short positions:
Sell the pound after the quote reaches 1.3632 (red line on the chart). However, only a weak UK inflation data will put pressure on GBP. Also, keep in mind that before selling, make sure that the MACD line is below zero and 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.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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