Analysis of transactions in the EUR/USD pair
Demand for risk assets continues to drop, as economic recovery in the US continues to accelerate. In fact, this strong economic growth has led to a sharp increase both in the US dollar and in Treasury yields, so, in the medium term, many expect EUR/USD to decline, at least until the beginning of this summer.
Trading recommendations for March 9
Euro traded downwards yesterday because of the disappointing data from Germany. However, in general, its economy is still the strongest as compared to other European countries, so most likely, the growth of Germany’s GDP will set off a strong upward movement in EUR/USD.
Today, reports on EU GDP and labor market will be released, but they are unlikely to deliver serious effects in the market. Instead, what traders should monitor is the yield on 10-year US bonds, since its continued growth will push the dollar up even more.
For long positions:
Buy the euro when the quote reaches 1.1885 (green line on the chart), and then take profit around the level of 1.1964. EUR/USD will trade upwards if reports on the EU economy come out 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 1.1829 (red line on the chart), and then take profit at the level of 1.1755. Pressure on the euro will return if Treasury yields in the US grow again.
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
GBP/USD is trading sideways, mainly because there is little data on the UK economy. Aside from that, very few are willing to sell the pound, since almost everyone is betting on a stronger economic recovery this year. In fact, the pound declined only because of the sharp growth in US Treasury yields.
Trading recommendations for March 9
A report on UK retail sales will be released today. However, it is unlikely to seriously affect the market. Bank of England Chief Economist Andy Haldane will also speak, and in the afternoon, there will be a report on small business sentiment in the US. Of course, these data are unlikely to result in massive changes in GBP/USD, as the pair will move only if there is a breakout from the resistance levels.
For long positions:
Buy the pound when the quote reaches 1.3872 (green line on the chart), and then take profit at the level of 1.3954 (thicker green line on the chart). Price will climb higher if the pound breaks above 1.3872.
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 1.3797 (red line on the chart), and then take profit at the level of 1.3716. It is best to open short positions because the trend in GBP/USD is bearish.
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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