Analysis of transactions in the EUR / USD pair
A signal to buy appeared in the market yesterday. However, it came when the MACD line was at the overbought area, which significantly limits the upward potential of the currency. Despite this, euro went up 20 pips.
Trading recommendations for June 1
Pay attention to the upcoming macroeconomic reports today as those will certainly affect investor sentiment. For example, strong EU data will set off a sharp jump in euro, while weaker-than-expected figures will result in a decline. Then, in the afternoon, the US will release a report on manufacturing activity, followed by statements from the Federal Reserve. If the Fed continues to adhere to a wait-and-see attitude, dollar will continue to decline. Accordingly, euro will resume trading upwards.
For long positions:
Enter a long position when the quote reaches 1.2244 (green line on the chart), and then take profit around the level of 1.2305. Euro will trade upwards if the EU publishes strong economic reports. 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 1.2206 (red line on the chart), and then take profit at the level of 1.2133. Euro will decline if Germany releases weak economic reports. 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 number of sell signals appeared in the market yesterday, but all of them had to be ignored because they came when the MACD line was at the oversold zone. Having the indicator there limits the downward potential of the currency, especially in the context of low trading volume and volatility. The succeeding buy signal had to be ignored as well because it appeared when the MACD line was at the overbought area.
Trading recommendations for June 1
Pay attention to the upcoming macroeconomic reports today as those will certainly affect investor sentiment. For example, strong UK data will set off a sharp jump in pound, while weaker-than-expected figures will result in a decline. At the same time, statements from the Bank of England may shake the market, especially if there are hints of an earlier-than-scheduled policy change. Such an announcement will be bullish for pound and would push its rate up.
For long positions:
Enter a long position when the quote reaches 1.4255 (green line on the chart), and then take profit at the level of 1.4315 (thicker green line on the chart). 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 1.4220 (red line on the chart), and then take profit at the level of 1.4168. 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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