Analysis of transactions in the EUR / USD pair
Two buy signals appeared in the market on Monday, but the first one had to be ignored because it came when the MACD line was at the overbought area. Meanwhile, the second signal appeared when the MACD line was moving upwards from zero, so euro was able to climb by as much as 45 pips. But there were no subsequent signals because euro did not reach the target value.
Trading recommendations for June 22
Although euro rose a bit on Monday, further growth is very unlikely because today, Fed Chairman Jerome Powell will deliver a speech, which will most likely bring demand back to dollar and accordingly, put pressure on risk assets. Powell might discuss future actions on monetary policy, as well as shed light on the possibility of scaling down the bond purchase program. During the European session, ECB Board member Philip Lane will also deliver a speech, which may help euro break above all-time highs. Reports on EU consumer confidence and US home sales will also be released, but all this will be no match to Powell’s statements.
For long positions:
Open a long position when euro reaches 1.1919 (green line on the chart), and then take profit around the level of 1.1965. However, a price increase is very unlikely because the upcoming speech of Fed Chairman Jerome Powell will most likely bring demand back to dollar, which will push risk assets into a bear market. In any case, 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 1.1895 (red line on the chart), and then take profit at the level of 1.1851. Pressure will return on the pair if the Eurozone releases weak economic reports. A massive drop may also occur after the Fed press conference, provided that the statements of Jerome Powell bring demand back to dollar. 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
Two buy signals appeared in the market on Monday, but both had to be ignored because they came when the MACD line was in an overbought area. Failure to break through 1.3907 also did not lead to a quick downward movement.
Trading recommendations for June 22
Upcoming report on the balance of industrial orders is unlikely to affect the market. But pound could turn down today on the statements of Fed Chairman Jerome Powell, which may return demand for dollar. The Bank of England meeting scheduled for this week may also curb risk appetite.
For long positions:
Open a long position when pound reaches 1.3924 (green line on the chart), and then take profit at the level of 1.3982 (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.
For short positions:
Open a short position when pound reaches 1.3889 (red line on the chart), and then take profit at the level of 1.3803. 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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