Analysis of transactions in the EUR / USD pair
A signal to sell appeared in the market yesterday. However, it had to be ignored because it came when the MACD line was at the oversold area. Having the indicator there significantly limited the upward potential of euro. No other signal appeared for the rest of the day.
Trading recommendations for June 3
Weak data on German retail sales pushed euro down yesterday, but the strong report on EU PPI offset some of the losses. Today, reports from EU and US will drive the market, for example, strong figures on the EU service sector will push euro up, while better-than-expected labor market data on the US will turn the picture around. The Federal Reserve may also make statements addressing inflation, which could bring demand back to dollar. Employment report from ADP could also fuel a surge in volatility.
For long positions:
Enter a long position when the quote reaches 1.2220 (green line on the chart), and then take profit around the level of 1.2266. Euro will trade upwards if the EU releases 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 1.2196 (red line on the chart), and then take profit at the level of 1.2164. Euro will decline if the EU publishes 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 signals appeared in the market yesterday, but only one was successful. This is because the first two sell signals came when the MACD line was at the oversold area, so they had to be ignored. It was only on the third signal that pound was able to decline by 30 pips, as by then the indicator was finally moving down from zero. But the buy signal that followed had to be ignored again because the MACD line went to the overbought area.
Trading recommendations for June 3
Pay attention to the upcoming macroeconomic reports today as those will significantly affect the market. For example, strong figures on the UK service sector will push pound up, while better-than-expected labor market data on the US will turn the picture around. The Federal Reserve may also address the issue of inflation, but there is little chance that it would shake the market.
For long positions:
Enter a long position when the quote reaches 1.4187 (green line on the chart), and then take profit at the level of 1.4248 (thicker green line on the chart). Pound will trade upwards if the UK 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 1.4152 (red line on the chart), and then take profit at the level of 1.4093. Pound will decline if UK releases a weak composite PMI report. 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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