Analysis of transactions in the EUR / USD pair
Euro rose by 20 pips on Wednesday as traders managed to set up long positions, thanks to the signal to buy that appeared when the MACD line was at the oversold area. But in the afternoon, demand for dollar increased, as the Fed protocol said the members are considering an early tapering in order to prevent the economy from overheating.
Today, there will be a report on the current account balance of ECB, which will not have a serious impact on the market if it does not diverge from the forecasts. Then, in the afternoon, US will release weekly data on jobless claims, which, if exceeds expectations, will put more pressure on EUR / USD.
For long positions:
Open a long position when euro reaches 1.1697 (green line on the chart), and then take profit at the level of 1.1742. EUR / USD will climb higher if the Euro area publishes strong economic data. But before buying, make sure that the MACD line is above zero, or is starting to rise from it. It is also possible to buy at 1.1665 and 1.1624, but the MACD indicator line must be in the oversold area in order to bring about a market reversal to 1.1697 and 1.1742.
For short positions:
Open a short position when euro reaches 1.1665 (red line on the chart), and then take profit at the level of 1.1624. A decline will occur if the Euro area releases weak economic indicators and US publishes a strong labor market report. But before selling, make sure that the MACD line is below zero, or is starting to move down from it. It is also possible to sell at 1.1697 and 1.1742, but the MACD line must be in the overbought area in order to provoke a market reversal to 1.1665.
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
GBP / USD declined by 20 pips yesterday because traders took short positions amid a signal to sell in the market, which came after the pair became oversold. Earlier, the market signal was to buy, but pound did not grow even though the MACD line was moving up from zero. The main reason for the slump was the weak data on UK inflation, followed by the Fed protocols that set off increased demand for dollar. Apparently, many members said the central bank may already cut measures in the coming months.
Today, there are no UK statistics scheduled to be released, so the market will most likely focus on the reports from US. If the figures on jobless claims turn out better than expected, pressure on EUR / USD will intensify.
For long positions:
Open a long position when pound reaches 1.3741 (green line on the chart), and then take profit at the level of 1.3812 (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. It is also possible to buy at 1.3700 and 1.3638, but the MACD line should be in the oversold area in order to set off a market reversal to 1.3741 and 1.3812.
For short positions:
Open a short position when pound reaches 1.3700 (red line on the chart), and then take profit at the level of 1.3638. GBP / USD will decline further if US releases a strong labor market data. But before selling, make sure that the MACD line is below zero, or is starting to move down from it. It is also possible to sell at 1.3741 and 1.3812, but the MACD line should be in the overbought area in order to trigger a market reversal to 1.3700 and 1.3638.
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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