Analysis of transactions in the EUR / USD pair
Three signals appeared in the market yesterday, but only one of them was profitable. This is because in the first buy signal at 1.2100, the MACD line was in the negative zone, thereby indicating that this action is incorrect. Fortunately, on the second test of this level, the MACD has finally turned back to the positive zone. However, the upward movement that occurred was not as strong as expected. Then, in the afternoon, a sell signal at 1.2069 was formed, but the MACD line was in the oversold zone so the action had to be ignored again.
Trading recommendations for March 4
Latest reports on the EU economy led to the growth of EUR / USD, even though some indicators have weaker data than expected.
Today, another set of reports will be released, but this time it will be about the volume of retail trade and unemployment rate in the EU. Data on US jobless claims and labor productivity will also be published, but most will pay attention to the statements of the Federal Reserve regarding interest rates and growing bond yields. Chances are, these will lead to the strengthening of the dollar, which will accordingly result in the decline of EUR / USD.
For long positions:
Buy the euro when the quote reaches 1.2068 (green line on the chart), and then take profit around the level of 1.2119. EUR / USD will trade upwards if reports from the EU turn out to be better than expected.
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 1.2044 (red line on the chart), and then take profit at the level of 1.1994. Pressure on the euro may return if the statements from the Federal Reserve supports the US dollar.
But before selling, be 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 the market yesterday, however, only two of them positive results. The first was to sell the pound at 1.3944, but it had to be ignored because the MACD line, during that time, was in the oversold zone. Meanwhile, the two buy signals at 1.3974 were successful, because every time the euro tested the level, the MACD line was in a positive zone, forming a convenient entry point for long positions. But all in all, GBP / USD grew by only 20 pips.
Trading recommendations for March 4
Weak data on the UK services sector resulted in a huge decline in GBP / USD. But traders, especially pound bulls, have not lost hope because the lifting of quarantine measures will certainly improve economic conditions and set off an increase in the pair.
In the meantime, today, the market will move based on the report on the UK construction sector, as well as on jobless claims and level of labor productivity in the US. The Federal Reserve will also talk about interest rates and the growth of US bond yields, which will also affect volatility and market sentiment.
For long positions:
Buy the pound when the quote reaches 1.3966 (green line on the chart), and then take profit at the level of 1.4025 (thicker green line on the chart). GBP / USD will trade upwards only if the dollar weakens in the market.
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 1.3930 (red line on the chart), and then take profit at the level of 1.3869. Breaking below 1.3930 will tear down many buy stop orders, which will accordingly lead to a very sharp decline in GBP / USD.
Of course, when 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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