Analysis of transactions in the EUR / USD pair
Only one signal appeared in the market last Friday, however, it had to be ignored because the MACD line was at the overbought area. Nevertheless, euro still rallied because of the weak reports on US retail trade, industrial production and consumer sentiment.
Trading recommendations for May 17
Pay attention to the upcoming data today as those will certainly affect the market. In fact, if Italy publishes a strong inflation report, the euro will be able to hit monthly highs. But since current indicators are showing that the euro is slightly overbought, be very cautious when entering long positions. Then in the afternoon, the US will release reports on manufacturing activity and the housing market. However, they are unlikely to affect investor sentiment.
For long positions:
Enter a long position when the quote reaches 1.2148 (green line on the chart), and then take profit around the level of 1.2200. Euro will turn up if Italy releases strong inflation data. But before buying, make sure that the MACD line is above zero, or is starting to rise from it.
For short positions:
Enter a short position when the quote reaches 1.2118 (red line on the chart), and then take profit at the level of 1.2064. Euro will turn down if the US publishes strong economic reports. 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
Several trading signals appeared in the market last Friday, however, only one was successful. This is because the MACD line was at the overbought area when the pound hit 1.4063 for the first time, thereby limiting the upside potential of the currency. Fortunately on the second try, the line moved to a more profitable zone, so the pound was able to climb by 40 pips.
Trading recommendations for May 17
Pay attention to the upcoming statements from the Bank of England as those may shake the markets today. Most likely, members, for example Andy Haldane, will mention the future course of the central bank’s monetary policy. Then in the afternoon, the US will release reports on manufacturing activity and the housing market. However, they are unlikely to affect investor sentiment.
For long positions:
Enter a long position when the quote reaches 1.4103 (green line on the chart), and then take profit at the level of 1.4155 (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:
Enter a short position when the quote reaches 1.4073 (red line on the chart), and then take profit at the level of 1.4026. 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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