Analysis of transactions in the EUR/USD pair
Two signals appeared in the market yesterday. However, both of them were unsuccessful because the MACD line, during those times, was in the wrong zone. To be more specific, selling at 1.1882 only led to a 10-pip downward movement, which indicates that the signal was wrong. Meanwhile, the buy signal at 1.1905 had to be ignored because it appeared when the MACD line was in the overbought zone.
Trading recommendations for April 13
Data on business sentiment in Germany and the whole Euro area will be released this morning. If the figures come out better than the forecasts, EUR/USD will trade upwards in the market. Then, in the afternoon, the US will publish its latest inflation report, which, if showed discrepancies, can lead to a very strong surge in market volatility.
For long positions:
Enter a long position when the quote reaches 1.1898 (green line on the chart), and then take profit around the level of 1.1935. Strong data from the Euro area will result in a strong upward movement. But before buying, make sure that the MACD line is above zero, or is starting to move up from it.
For short positions:
Enter a short position when the quote reaches 1.1885 (red line on the chart), and then take profit at the level of 1.1851. Weak data from the Euro area will lead in another downward movement in EUR/USD. 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
Selling at 1.3678 did not bring the expected success even though the MACD line was in a profitable zone. Instead, what happened is that the pound rose to 1.3704, and even though buying at such a high level is risky since the MACD line went in the overbought zone, long positions surged, as a result of which the price climbed up to 1.3744, where a sell signal was formed.
Trading recommendations for April 13
Strong reports on UK inflation and production will result in a sharper rise in GBP/USD. But in the afternoon, data on US CPI may change the picture and bring back a bear market, especially if the figures turn out better than projected.
For long positions:
Enter a long position when the quote reaches 1.3746 (green line on the chart), and then take profit at the level of 1.3815 (thicker green line on the chart). Pound will trade higher if the UK publishes a strong GDP report. Make sure that when you buy GBP, the MACD line is above zero or is starting to rise from it.
For short positions:
Enter a short position after the quote reaches 1.3725 (red line on the chart), and then take profit at the level of 1.3673. Pressure on the pound may increase after the US releases a strong inflation report. When 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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