Analysis of transactions in the EUR / USD pair
Three sell signals appeared in the market signal on Wednesday, but the first two had to be ignored because they came when the MACD line was at the oversold area. Fortunately, the third one appeared at the time that the indicator was going down from zero, so EUR / USD was able to drop by about 35 pips. Then, afterwards, a signal to buy appeared, which led to a small rollback of about 10-12 pips.
Trading recommendations for July 1
Strong US data led to a bearish scenario in EUR / USD. And today, the selling pressure could continue if the statements from European Central Bank president Christine Lagarde are not in favor of the currency. Upcoming data on German retail sales and EU business activity are also unlikely to push the quote up, nor will the report on US labor market and manufacturing activity, as those will most likely provoke another increase in dollar demand.
For long positions:
Open a long position when euro reaches 1.1868 (green line on the chart), and then take profit around the level of 1.1911. EUR / USD will rise if the Eurozone publishes strong reports on the economy. 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 1.1839 (red line on the chart), and then take profit at the level of 1.1802. Further decline will occur if the Eurozone releases weak data on the economy. 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
Several signals appeared in the market on Wednesday, but all of them had to be ignored because they came when the MACD line was not in a good area. Doing so helped avoid losses, especially since the potential movements of GBP / USD were limited.
Trading recommendations for July 1
Pound declined on Wednesday morning because of the latest data on UK GDP. But some time after, increased bullish activity provoked the price to rollback, although it did not manage to return to 1.3865 because the employment data from ADP led to another sharp increase in dollar. Today, GBP / USD could increase again, depending on the statements of Bank of England governor Andrew Bailey. Strong data on UK manufacturing may also raise the currency, but the jump will not last long because in the afternoon, there will be a report on US labor market and manufacturing, which may bring demand back for dollar.
For long positions:
Open a long position when pound reaches 1.3837 (green line on the chart), and then take profit at the level of 1.3882 (thicker green line on the chart). Growth may occur if UK releases good data on the economy. 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 1.3805 (red line on the chart), and then take profit at the level of 1.3760. GBP / USD will come under pressure if UK releases weak data on the economy. Passive stance of the Bank of England on monetary policy may also lower demand for pound. 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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