Analysis of transactions in the EUR / USD pair
A buy signal appeared in EUR / USD yesterday. However, it had to be ignored since during that time, the MACD line has long been in the overbought zone. No other signals emerged in the market. Low volatility also did not allow bears to turn the market over to their side.
Trading recommendations for February 11
Overcoming the weekly high enabled EUR / USD to trade sideways, however, the upward potential became limited.
And today, there is a high chance that USD will rise in the markets if the Federal Reserve announce positive news on monetary policy. A report on Germany’s wholesale price will also be released, followed by economic forecasts from the European Commission. Many expect that the projections will be negative, which will put pressure on the European currency. A report on the US labor market will also be published.
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 there are good economic forecasts from the European Commission.
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 1.2112 (red line on the chart), and then take profit at the level of 1.2067. Data from the European Commission may act as catalyst for a decline
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
Contrary to what was expected, GBP / USD did not rise from 1.3835, perhaps due to the MACD line being in the overbought zone. It did increase by about 20 pips though, but immediately after that it dropped very sharply.
Trading recommendations for February 11
Bulls need to try very hard in pushing the pound above yearly highs, otherwise GBP / USD will find it difficult to continue trading upwards. But today, a report on the balance of house prices in the UK will be released, followed by data on jobless claims in the US. The Fed will also discuss its decision on monetary policy, and it could lead to a rise in USD.
For long positions:
Buy the pound when the quote reaches 1.3864 (green line on the chart), and then take profit at the level of 1.3915 (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 1.3830 (red line on the chart), and then take profit at the level of 1.3770.
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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