Analysis of transactions in the EUR/USD pair
A sell signal appeared in the market yesterday, and fortunately it was during the time that the MACD line has moved down from zero. As a result, EUR/USD declined by around 20 pips, but it was not able to reach the target level which was 1.1808.
Trading recommendations for March 25
The outlook for the euro is not good, especially since many EU countries have reimposed strict quarantine measures. And today, its position may weaken even more, when the European Central Bank insists again on more fiscal stimulus. The US will also publish reports on jobless claims and Q4 GDP, which should support the US dollar and accordingly, lead to a further fall in the euro. The day will end with a speech from the Federal Reserve.
For long positions:
Enter a long position when the quote reaches 1.1838 (green line on the chart), and then take profit around the level of 1.1880. However, it is unlikely that the price will grow today because almost all indicators are pointing to a further downwards move. In fact, a bunch of problems are persisting in the EU, especially since a third COVID-19 wave is starting. The ECB has also called on the government to increase support measures.
Keep in mind that before buying, the MACD line should be above zero and is starting to rise from it.
For short positions:
Enter a short position when the quote reaches 1.1805 (red line on the chart), and then take profit at the level of 1.1771. Pressure could return at any moment, but it could be offset by the upcoming statements from the European Central Bank. Policy decisions from the Federal Reserve will also lead to a surge in volatility.
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
Bullish traders failed to push the pound above 1.3699, as a result of which the currency traded sideways. Then, a sell signal appeared in the market, so bears began to be more active. It also coincided with the MACD line moving down from zero, so GBP/USD was able to decline by about 20 pips. But immediately after that, the pound traded upwards again.
Trading recommendations for March 25
Weak data on UK inflation led to a sharp drop in GBP/USD, but fortunately it was offset by good activity data on both manufacturing and service sectors. Today, the market will be partially influenced by statements from the Bank of England, as they will be about monetary and credit rates. Then, in the afternoon, reports on the US economy will be released, followed by statements from the Federal Reserve.
For long positions:
Enter a long position when the quote reaches 1.3714 (green line on the chart), and then take profit at the level of 1.3767 (thicker green line on the chart). The pound will strengthen if the forecasts from the Bank of England are positive.
Make sure that when you buy GBP, the MACD line is above zero and is starting to rise from it.
For short positions:
Enter a short position after the quote reaches 1.3674 (red line on the chart), and then take profit at the level of 1.3620. Weak data on UK inflation will convince the Bank of England to delay raising interest rates, as a result of which demand for the pound will dwindle.
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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