Analysis of transactions in the EUR/USD pair
Yesterday was one of the quietest days in EUR/USD. Volatility was at a critically low level, as was the trading volume. To add to that, the signal to sell at 1.1929 had to be ignored because the MACD line, during that time, was in the oversold area, which obviously limited the downward potential of the European currency. No other signals emerged within the day.
Trading recommendations for March 16
Today, reports on consumer prices in France and Italy will be released, followed by data on business sentiment in Germany and the whole Euro area. All this may provide support to the euro and lead to an increase in the EUR/USD pair.
Then, in the afternoon, a meeting between EU Finance Ministers will be held, and statistics from the US will be released. These are changes in the volume of retail trade and changes in the volume of industrial production, which may lead to the strengthening of the US dollar.
For long positions:
Buy the euro when the quote reaches 1.1949 (green line on the chart), and then take profit around the level of 1.1993. EUR/USD will rally if economic indicators from Germany come out better than expected.
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 1.1918 (red line on the chart), and then take profit at the level of 1.1870. Pressure on the euro will return if there are weak statistics from the EU. Another rise in US Treasury yields will also result in a decline in EUR/USD.
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
Two sell signals appeared in the market yesterday. However, the second one had to be ignored because the MACD line, during that time, was in the oversold zone. But in the first signal, the decline resulted in the continuation of a bearish market.
Trading recommendations for March 16
Today, the market will be influenced by upcoming statistics from the United States. In particular, these are changes in the volume of retail trade and changes in the volume of industrial production, which could lead to further strengthening of the US dollar and resumption of the bearish trend in GBP/USD.
For long positions:
Buy the pound when the quote reaches 1.3895 (green line on the chart), and then take profit at the level of 1.3948 (thicker green line on the chart). However, there is a small chance that price will increase, since the trend in GBP/USD is bearish.
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 1.3856 (red line on the chart), and then take profit at the level of 1.3788. Strong data on the US economy will increase pressure on the pound, which in turn will continue the downward trend 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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