Analysis of transactions in the EUR / USD pair
A sell signal appeared at 1.2148 yesterday. And since the MACD line was in the negative zone at that time, EUR / USD was able to decline to 1.2111. The downward movement occurred after the ECB conference, during which representatives talked about the high rate of the euro and the danger it poses to the EU economy. The fall continued with renewed vigor afterwards.
Trading recommendations for January 28
The Federal Reserve decided to leave interest rates unchanged at zero, in line with the forecasts of many economists. The bond purchase program was also left unchanged, which supported the US dollar.
Today, the movement of EUR / USD will depend on the upcoming 4th quarter US GDP report. In particular, if the data comes out worse than expected, the position of the euro will rise rather strongly in the market.
Data on EU consumer confidence will also affect the market, however, it is leaning more on the weakening of the European currency.
For long positions:
Buy the euro when the quote reaches 1.2112 (green line on the chart), and then take profit around the level of 1.2164. EUR / USD will rally if there is good economic data from the EU.
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 1.2088 (red line on the chart), and then take profit at the level of 1.2041. EUR / USD will trade downwards if there is good economic data from the US.
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
Three signals appeared in GBP / USD yesterday. The first one is to buy at 1.3740, however, during that time, the MACD line was in the oversold zone, which suggests that this indication is rather false. Then, another buy signal appeared in the market, but this time, the MACD line is barely entering the positive zone, which made the transactions unprofitable.
Fortunately, during the US session, a sell signal appeared at 1.3716, and during this time, the MACD line was also in a sell zone, thereby allowing the price to decline by about 45 pips.
Trading recommendations for January 28
News that vaccination is being actively carried out in the UK supported the pound, however, it was not enough to bring the quote at much higher price levels. Apparently, the decisions during the Fed meeting put quite strong pressure on GBP / USD, thereby limiting the upward potential of the pair.
Today, a lot will depend on the 4th quarter US GDP report. In particular, a rather strong data will lead to further decline towards 1.3608. And given the lack of economic reports from the UK, the bulls may attempt to catch 1.3683, from which growth is expected.
For long positions:
Buy the pound when the quote reaches 1.3683 (green line on the chart), and then take profit at the level of 1.3756 (thicker green line on the chart). GBP / USD will climb higher if the quote breaks out of the yearly highs.
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 1.3660 (red line on the chart), and then take profit at the level of 1.3608. GBP / USD will trade downwards if there is good economic data from the US.
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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