Analysis of transactions in the EUR / USD pair
Two sell signals appeared in the market yesterday. However, the first one came when the MACD line was in the oversold area, so traders had to ignore it. Fortunately, by the time that the second signal appeared, the MACD line had already moved close to zero, so the euro was able to decline from 1.2215 to 1.2169.
Trading recommendations for May 20
Pay attention to the upcoming macroeconomic reports today as those will certainly affect the market. Strong figures will result in the euro climbing up the markets, while weaker numbers will bring back pressure on the currency. Then, in the afternoon, the US will publish a report on jobless claims, which, if comes out better than expected, will raise dollar demand higher and lead to another decline in EUR / USD.
For long positions:
Enter a long position when the quote reaches 1.2193 (green line on the chart), and then take profit around the level of 1.2237. Euro will turn up if the EU publishes a strong economic report. But before buying, make sure that the MACD line is above zero, or is starting to rise from it.
For short positions:
Enter a short position when the quote reaches 1.2173 (red line on the chart), and then take profit at the level of 1.2138. Euro will decline more if Germany publishes a weak report on inflation. But before selling, make sure that the MACD line is below zero, or 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
A sell signal appeared in the market yesterday. Fortunately, it came during the time that the MACD line was moving down from zero, so the pound was able to decline from 1.4173 to 1.4129.
Trading recommendations for May 20
Pay attention to the upcoming statements from the Bank of England as those may significantly affect investor sentiment. Then, in the afternoon, a report on US jobless claims will be published, where if the figure comes out better-than-expected, then demand for dollar will rise even higher. Such will accordingly lead to a further drop in GBP / USD.
For long positions:
Enter a long position when the quote reaches 1.4132 (green line on the chart), and then take profit at the level of 1.4175 (thicker green line on the chart). Pound will turn up if bullish traders manage to push the quote above 1.4132. But before buying, make sure that the MACD line is above zero, or is starting to rise from it.
For short positions:
Enter a short position when the quote reaches 1.4102 (red line on the chart), and then take profit at the level of 1.4053. Pound is expected to trade downwards because yesterday’s news successfully turned the trend into bearish. But before selling, make sure that the MACD line is below zero, or 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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