Analysis of transactions in the EUR / USD pair
A buy signal appeared in the market yesterday. However, it had to be ignored because during that time, the MACD line was in a positive zone for quite a long time, which indicated limited growth of the euro in the near future.
Trading recommendations for February 19
Euro traded upwards amid weak data on US jobless claims. Today, this bullish move could continue if business activity in both manufacturing and service sectors in Europe are the same or better than expected. A strong performance will mean that the EU is recovering, which will set off demand for the European currency.
But in the afternoon, similar indicators will be published in the US. This time, it could lead in the strengthening of the US dollar, which will limit the upward potential of the EUR / USD pair.
For long positions:
Buy the euro when the quote reaches 1.2095 (green line on the chart), and then take profit around the level of 1.2130. EUR / USD will rally if there are very good economic reports from the EU.
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 1.2071 (red line on the chart), and then take profit at the level of 1.2036. Pressure on the euro may return if data from the EU are weaker than the forecasts.
But 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
A good buy signal appeared in the market yesterday. Fortunately, during that time, the MACD line was in a positive area, hence, the pound was able to climb up by 70 pips from 1.3863, hitting 1.3932.
Trading recommendations for February 19
The trend in GBP / USD remains bullish. In fact, today, a number of economic reports are expected to be published and they are likely to be much better than expected, which will certainly lead to a further price increase in GBP / USD. But in the afternoon the US dollar could strengthen, if similar reports from the US are also better than the forecasts. Such could limit the upward potential of the pair.
For long positions:
Buy the pound when the quote reaches 1.3966 (green line on the chart), and then take profit at the level of 1.4016 (thicker green line on the chart). GBP / USD will continue to trade upwards if there are very good economic reports from the UK.
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 1.3933 (red line on the chart), and then take profit at the level of 1.3863. GBP / USD will trade downwards if economic data from the US turn out weaker than expected.
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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