Analysis of transactions in the EUR / USD pair
EUR / USD rose after good economic reports from Germany. According to the data, German exports rose by 0.1%, while imports fell by around the same percentage. Trade surplus, meanwhile, remained virtually unchanged and to € 16 billion euros. All this led to a 30-pip increase in EUR / USD, but immediately after that, the upward movement slowed again.
Trading recommendations for February 10
The European Central Bank will hold a press conference today, and during which its president, Christine Lagarde, may discuss news on COVID-19 and necessary support for the EU economy.
Aside from that, inflation reports will be important for markets, as a strong performance will definitely lead to a new wave of growth in EUR / USD. Economic reports in France, meanwhile, are unlikely to spoil the mood of investors, even if it comes out having negative numbers.
In the afternoon, a similar report will come from the United States. Data will once again confirm if there is a need to shift interest rates near zero. Changes in the volume of sales, on the other hand, are unlikely to give serious effects on the US dollar.
For long positions:
Buy the euro when the quote reaches 1.2140 (green line on the chart), and then take profit around the level of 1.2181. EUR / USD will rally if demand for the dollar continues to drop. Good inflation data in Germany will also spur traders to buy the European currency.
But 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 1.2107 (red line on the chart), and then take profit at the level of 1.2067. EUR / USD will trade downwards if there is bad economic data from Germany and France.
Of course, before selling, it is important to 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 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
GBP / USD traded sideways yesterday. In fact, there were no trading signals in the market, perhaps due to the unsuccessful breakouts at 1.3787. Overcoming the level during the US session, meanwhile, had to be ignored since few expected the movement to continue during today’s Asian session.
Trading recommendations for February 10
The Bank of England will have a press conference today, and whatever statements they release will surely influence demand for the British pound. In particular, if its head, Andrew Bailey, ignores the topic of negative interest rates again, GBP / USD will continue rising to yearly highs. But if the upward move slows after passing 1.3835, a downward correction may well occur in the market.
Then, in the afternoon, United States will release its latest inflation report, in which if the figure comes out weaker than expected, the Fed may keep interest rates near zero. Changes in the volume of sales, meanwhile, are unlikely to give serious effects on the US dollar.
For long positions:
Buy the pound when the quote reaches 1.3835 (green line on the chart), and then take profit at the level of 1.3881 (thicker green line on the chart). The bull market will resume if the position of the US dollar continues to weaken.
Keep in mind that before buying, make sure that the MACD line is above zero and is starting to rise from it.
For short positions:
Sell the pound after the quote reaches 1.3800 (red line on the chart), and then take profit at the level of 1.3749. Do this when the Bank of England raises the topic of negative interest rates.
Keep in mind that before 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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