Analysis of transactions in the EUR / USD pair
EUR / USD traded upwards in the morning, as a result of which it hit a new weekly high in the market. Such formed a buy signal in the euro, however, the location of the MACD line limited the upward potential of the pair. There were no other signals for the rest of the day.
Trading recommendations for February 12
Economic forecasts from the European Commission were ignored by traders, even though it said that EU GDP will grow by only 3.8% this year, contrary to the 4.2% forecasted earlier. Also, the forecast for 2022 was raised from 3% to 3.8%.
The report on German wholesale prices did not influence the market as well, since the report said the index was flat on an annualized basis, after falling by 1.2% in December.
As for today, market direction will base on the upcoming data on US consumer sentiment and inflation expectations. Good figures will certainly raise demand for the dollar, which in turn will result in a decline in EUR / USD.
For long positions:
Buy the euro when the quote reaches 1.2140 (green line on the chart), and then take profit around the level of 1.2181. EUR / USD will rally if there are weak economic reports from the US.
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 1.2112 (red line on the chart), and then take profit at the level of 1.2067. Upcoming data from the US could force traders to take profit on long positions, which will only increase pressure on EUR / USD.
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 signals appeared in GBP / USD yesterday. The first one is to sell in the market, which led to a decrease of approximately 15 pips. Then, afterwards, it pulled back, but it again traded at 1.3830 around the US session. This time, it led to a decrease of more than 25 pips.
Trading recommendations for February 12
Yesterday’s report on UK house prices did not lead to a surge in volatility. Yes, prices continued to rise, but the overall growth rate has slowed.
Anyhow, today, GBP / USD will likely be influenced by the upcoming report on UK GDP.
A bad data will definitely increase pressure on the pair, as a result of which a new wave of downward correction will form. But if the figure comes out good, demand for the pound may increase, which could lead to new yearly highs in the market. Report on consumer sentiment, as well as inflation expectations in the US, will also set market direction.
For long positions:
Buy the pound when the quote reaches 1.3809 (green line on the chart), and then take profit at the level of 1.3853 (thicker green line on the chart). The bull market will resume if there is a strong UK GDP report.
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 1.3784 (red line on the chart), and then take profit at the level of 1.3735. GBP / USD is expected to trade downwards because the upcoming UK GDP report will most likely be weaker than expected.
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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