Analysis of transactions in the EUR / USD pair
A signal to buy appeared in the market on Monday, and it coincided with the MACD line going up from zero. As a result, EUR / USD moved 15 pips up from 1.1882. However, immediately after that, the pair returned to its previous level and stayed there for the rest of the day.
Trading recommendations for August 3
Euro fell on Monday amid weak PMI reports from Germany, France, Italy and other eurozone countries. But data from the US, which fell short of forecasts, limited the downward potential of the currency. Today, the market will move depending on the PPI report from the Euro area. If the indicator shows strong growth, demand for euro will increase. Then, in the afternoon, there may be a slight surge in volatility, when the US releases its data on industrial orders. But since the indicator does not really represent anything important, EUR / USD will most likely remain sideways.
For long positions:
Open a long position when euro reaches 1.1887 (green line on the chart), and then take profit at the level of 1.1920. Demand will increase if the Euro area publishes a strong PPI report. 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 1.1857 and 1.1818, but the MACD indicator line must be in the oversold area in order to bring about a market reversal to 1.1887.
For short positions:
Open a short position when euro reaches 1.1863 (red line on the chart), and then take profit at the level of 1.1825. A decline will occur if the Euro area releases weak economic reports. 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 1.1887 and 1.1920, but the MACD line must be in the overbought area in order to provoke a market reversal to 1.1863.
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 signal to sell appeared in the market on Monday, but it did not provoke a large decline even if the MACD line was at the overbought area. Then, in the afternoon, the MACD indicator dropped to zero, so the signal had to be ignored again. There were no other signals for the rest of the day.
Trading recommendations for August 3
Pound fell on Monday amid weak manufacturing data from UK. Then, in the afternoon, it traded sideways because investors ignored the data from US. And since there are no UK statistics scheduled for today, GBP / USD will remain in a horizontal channel until the publication of US industrial orders. However, this indicator does not really represent anything important, so even if there is a slight surge in volatility, trading will most likely remain sideways.
For long positions:
Open a long position when pound reaches 1.3905 (green line on the chart), and then take profit at the level of 1.3956 (thicker green line on the chart). GBP / USD will climb higher if bullish traders manage to push the quote above 1.3910. 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 1.3885 and 1.3846, but the MACD line should be in the oversold area in order to set off a market reversal to 1.3905.
For short positions:
Open a short position when pound reaches 1.3885 (red line on the chart), and then take profit at the level of 1.3846. A decline will occur if the Bank of England maintains a dovish stance on monetary policy. 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 1.3905 and 1.3956, but the MACD line should be in the overbought area in order to trigger a market reversal to 1.3885.
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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