Analysis of transactions in the EUR / USD pair
A buy signal appeared in the market, but it had to be ignored because it came when the MACD line was at the overbought area. In any case, euro still rose slightly above 1.2135, but immediately after that it turned around and returned to its previous level. On this, a sell signal developed, but it had to be ignored as well because by that time, the MACD line was already at the oversold area.
Trading recommendations for June 16
The key event for today is the meeting of the Federal Reserve. If the central bank leaves its monetary policy unchanged, dollar will fall, while euro will rise. But if they announce a change, dollar will rally and EUR / USD will collapse.
For long positions:
Open a long position when euro reaches 1.2135 (green line on the chart), and then take profit around the level of 1.2191. The currency will rise if the Fed does not announce any change in its monetary policy. But before buying, make sure that the MACD line is above zero, or is starting to rise from it.
For short positions:
Open a short position when euro reaches 1.2108 (red line on the chart), and then take profit at the level of 1.2070. The currency will decline if the Fed announces a policy change. 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
Pound rose on Tuesday, thanks to the strong data on the UK labor market. It formed a buy signal in GBP / USD, but it had to be ignored because it came when the MACD line was at the overbought area. The sell signal that followed had to be ignored as well because by that time, the MACD line had moved to the oversold area.
Trading recommendations for June 16
Pay attention to the upcoming report on UK inflation because it will significantly affect the market. A better-than-expected figure will set off a rally, while weak data may result in another decline. Then, in the afternoon, the Federal Reserve will have a meeting, where if they announce a change in monetary policy, another drop in pound will take place. Accordingly, if no changes are made, pound will continue to rise and perhaps have a larger recovery by the end of the week.
For long positions:
Open a long position when pound reaches 1.4097 (green line on the chart), and then take profit at the level of 1.4149 (thicker green line on the chart). The currency will rise if UK publishes a good inflation report. But before buying, make sure that the MACD line is above zero, or is starting to rise from it.
For short positions:
Open a short position when pound reaches 1.4067 (red line on the chart), and then take profit at the level of 1.4015. Bad data on UK inflation and decisions by the Federal Reserve may put pressure on the currency. 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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