Analysis of transactions in the EUR / USD pair
The closing of long positions in USD led to a sharp rise in the euro. In fact, a buy signal was formed at 1.1975, and it turned out profitable since the MACD line at that time was in the positive zone. Then, the pair dropped a bit below 1.1975, after which it traded upwards again, climbing up by 40 pips and reaching 1.2019, which was our target level.
Trading recommendations for February 8
The European Central Bank will hold a press conference today, and during which, its head, Christine Lagarde, will certainly discuss economic prospects for 2021. And if Lagarde also mentions the exchange rates, pressure on the euro will increase, which will lead to a decline in EUR / USD. But good economic data from Germany and the eurozone could resume the bullish trend in the market.
For long positions:
Buy the euro when the quote reaches 1.2045 (green line on the chart), and then take profit around the level of 1.2081. EUR / USD will rally if there is good economic data from Germany and the eurozone. Good news on COVID-19 vaccines will also strengthen the euro.
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 1.2024 (red line on the chart), and then take profit at the level of 1.1971. EUR / USD will trade downwards if there is bad economic data from Germany and negative economic assessment from the ECB.
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
Bulls had a hard time increasing the price last Friday. In fact, the first buy signal at 1.3700 failed, even though the MACD line at that time was in a positive area. Fortunately, after the release of reports on the US labor market, the pound retested 1.3700, and this time, price increased by about 35 pips before stopping again.
Trading recommendations for February 8
The Bank of England will hold a press conference today, and during which, its head, Andrew Bailey, may touch on the topic of negative interest rates. If this happens, pressure on the pound will return. But if not, GBP / USD will continue trading upwards, possibly reaching the yearly highs. Aside from that, there are no important news expected to be published, so only a break above 1.3750 will trigger a new bullish wave towards much higher price levels.
For long positions:
Buy the pound when the quote reaches 1.3749 (green line on the chart), and then take profit at the level of 1.3811 (thicker green line on the chart). The bull market will resume if the Bank of England retains its current monetary policy.
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 1.3711 (red line on the chart), and then take profit at the level of 1.3649. GBP / USD will trade downwards if the Bank of England decides to impose negative interest rates.
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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