Analysis of transactions in the EUR / USD pair
EUR / USD declined by 20 and then 30 pips on Thursday as traders managed to set up short positions, thanks to the signals to sell that appeared when the MACD line was at the overbought area. The driver was the stable decrease in weekly US jobless claims, which provoked increased demand for dollar.
Today, there will be a report on German PPI, but it is unlikely to help euro regain its lost positions. At most, the movement will be horizontal, unless dollar bulls close their positions this weekend.
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 1.1733. 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 1.1675 and 1.1644, but the MACD indicator line must be in the oversold area, as only by that will the market reverse to 1.1697 and 1.1733.
For short positions:
Open a short position when euro reaches 1.1675 (red line on the chart), and then take profit at the level of 1.1644. A decline will occur if Germany releases a weak economic 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, as only by that will the market reverse to 1.1675.
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 continued to decline yesterday even though there was a signal to buy that coincided with the MACD line being at the oversold area. This resulted in huge losses, especially since there were no other market signals for the rest of the day. The main reason for the slump was the continued decrease in weekly jobless claims.
And today, this bearish sentiment may continue if the data on UK retail sales turn out bad. But in the afternoon, there may be a slight correction in the market, as dollar bulls may close their positions since it is already the end of the week.
For long positions:
Open a long position when pound reaches 1.3645 (green line on the chart), and then take profit at the level of 1.3688 (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 1.3618 and 1.3583, but the MACD line should be in the oversold area, as only by that will the market reverse to 1.3645 and 1.3688.
For short positions:
Open a short position when pound reaches 1.3618 (red line on the chart), and then take profit at the level of 1.3583. 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 1.3645 and 1.3688, but the MACD line should be in the overbought area, as only by that will the market reverse to 1.3618 and 1.3583.
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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