Analysis of transactions in the EUR/USD pair
Two buy signals appeared in the market last Friday. However, both of them had to be ignored because the MACD line, during both times, were in the overbought zone, which clearly limited the upward potential of the euro. No other signals emerged the rest of the day.
Trading recommendations for March 29
EUR/USD continued to trade upwards last Friday amid weaker-than-expected data on the US economy. But today, movement may halt as there are no important statistics scheduled to be published both in Europe and the United States. Nevertheless, traders should still be cautious as false market signals may emerge due to low trading volumes. Also, FOMC member Christopher Waller will speak in the afternoon, although his statements are unlikely to affect the market much.
For long positions:
Enter a long position when the quote reaches 1.1801 (green line on the chart), and then take profit around the level of 1.1836. Keep in mind that before buying, the MACD line should be above zero and is starting to rise from it.
For short positions:
Enter a short position when the quote reaches 1.1771 (red line on the chart), and then take profit at the level of 1.1734. But 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
A buy signal appeared in the market last Friday, however, it did not lead to a strong price increase since the MACD line, during that time, was along zero. All in all, growth was only about 20 pips. But after the statements of Treasury Secretary Rishi Sunak, the pound began to climb up, as a result of which a buy signal was formed again. This time, the MACD line is slightly above zero, so GBP/USD was able to move higher, by about 35 pips.
Trading recommendations for March 29
Increased demand and more positive outlook for the UK economy led to a sharp price increase last Friday. However, such a bullish move is unlikely to continue today since data on UK money supply and approved mortgage applications are scheduled to be published, and they are unlikely to provide support to the British pound.
For long positions:
Enter a long position when the quote reaches 1.3795 (green line on the chart), and then take profit at the level of 1.3864 (thicker green line on the chart). Price will increase higher if the pound consolidates above 1.3805.
Make sure that when you buy GBP, the MACD line is above zero and is starting to rise from it.
For short positions:
Enter a short position after the quote reaches 1.3756 (red line on the chart), and then take profit at the level of 1.3707. But there is no rush to sell now, as the fast recovery of the UK economy is bringing demand back for risk assets.
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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