Analysis of transactions in the EUR / USD pair
Euro continued to trade inside the channel, mainly because volatility was rather low yesterday. There was also no trading signal in the market, and latest reports did not have any effect on the balance of power between buyers and sellers. In fact, speeches from central bank officials were ignored by traders.
Trading recommendations for February 25
The market will move today according to the latest economic reports from the US. To put it more precisely, EUR / USD will drop if there is a strong decrease in jobless claims and change in Q4 GDP. Demand for the dollar will also climb up if there is an increase in orders for durable goods.
For long positions:
Buy the euro when the quote reaches 1.2188 (green line on the chart), and then take profit around the level of 1.2235. EUR / USD will rally if there are very good economic reports from the EU.
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 1.2162 (red line on the chart), and then take profit at the level of 1.2104. Pressure on the euro may return if reports for the EU economy are bad. To add to that, good data from the US will push demand for the dollar up, which will accordingly result in a decline in EUR / USD.
But 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
Pound continues to trade upwards amid good reports for the UK economy and easing of quarantine measures. In fact, the decline yesterday was nothing more than a correction after the recent bull market.
Trading recommendations for February 25
A report on the state of the US labor market will be released today, and it could set the tone of trading for GBP/USD. To put it more precisely, a decrease in jobless claims and increase in orders for durable goods will push demand for the dollar up. Accordingly, a weaker-than-expected data will continue the bull market in GBP/USD.
For long positions:
Buy the pound when the quote reaches 1.4174 (green line on the chart), and then take profit at the level of 1.4239 (thicker green line on the chart). GBP/USD is expected to continue trading upwards, at least if there is no strong economic report from the US.
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 1.4135 (red line on the chart), and then take profit at the level of 1.4053. It is not a good idea to trade against the trend, but a good report from the US may temporarily strengthen the US dollar, which will accordingly lead to a decline in EUR/USD.
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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