Analysis of transactions in the EUR/USD pair
Volatility finally returned to normal. That being said, a good sell signal appeared in the market, which became successful because the MACD line, during that time, has moved below zero. All in all, euro decreased by around 50 pips.
Trading recommendations for March 19
The European Central Bank turned a blind eye on rising US Treasury yields, so EUR/USD will most probably continue declining in the market. But the upcoming data on German PPI could also influence the direction of trading today.
For long positions:
Buy the euro when the quote reaches 1.1940 (green line on the chart), and then take profit around the level of 1.1986. However, it is unlikely that the price will grow today because almost all indicators are pointing to a further downwards move.
Keep in mind that before buying, the MACD line should be above zero and is starting to rise from it.
For short positions:
Sell the euro after the quote reaches 1.1901 (red line on the chart), and then take profit at the level of 1.1854. Pressure on EUR/USD should continue because US Treasury yields have grown again.
Before selling, be sure that the MACD line is below zero and 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
Although many signals appeared in the market yesterday, only one of them was successful. This is because on the first test of 1.3970, the MACD line was in the overbought zone, which seriously limited the upward potential of the pound. Fortunately, on its second test, the MACD line has finally recovered, but the increase was not as strong as expected. Then, following the release of the Bank of England’s policy decisions, a signal to sell at 1.3927 was formed. But it had to be ignored as well because the MACD line, at that time, was in the oversold zone.
Trading recommendations for March 19
The latest policy decisions of the Bank of England led to the decrease in GBP/USD. Members have decided to leave the key interest rates and QE measures unchanged, at 0.10% and £ 895 billion, respectively. And today, the price should drop even lower amid important news in the country. Although data on the UK public sector is unlikely to shake the market, the pound may decline due to upcoming statements from BoE members.
For long positions:
Buy the pound when the quote reaches 1.3935 (green line on the chart), and then take profit at the level of 1.3998 (thicker green line on the chart). But the price will increase only after a break above 1.3935. Make sure that when you open a buy position, the MACD line is above zero and is starting to rise from it.
For short positions:
Sell the pound after the quote reaches 1.3899 (red line on the chart), and then take profit at the level of 1.3850. When selling, make sure that the MACD line is below zero and 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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