Analysis of transactions in the EUR / USD pair
Quite a lot of signals appeared in the market yesterday, however, some of them had to be ignored in order to not lose any profit. The first signal was to buy at 1.2045, but even though the MACD line, during that time, has moved up from zero, a strong bullish movement still did not take place.
Then, the next signal was to sell at 1.2024, but it had to be ignored as the MACD line, at that time, was in the overbought zone. The third signal, which is to sell at 1.2024, was also unprofitable, as the pair did not drop as expected. The same also happened with the buy signal at 1.2045.
Trading recommendations for February 9
Democrats are trying to speed up the approval of the $ 1.9 trillion bailout bill. Accordingly, this caused demand for the US dollar to decline, as its approval will certainly lead to the weakening of the USD’s position in the market.
As for today, a number of economic reports will be released. In particular, these are foreign trade balance of Germany, volume of industrial production in Italy, small business optimism Indicator and rate of vacancy and turnover in the United States. Their figures will most likely influence market dynamics and sentiment.
For long positions:
Buy the euro when the quote reaches 1.2088 (green line on the chart), and then take profit around the level of 1.2144. EUR / USD will rally if there is good news from EU countries.
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 1.2055 (red line on the chart), and then take profit at the level of 1.2000. EUR / USD will trade downwards if there is bad economic data from Germany and Italy.
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 signal to sell appeared in the market yesterday, however, it had to be ignored because during that time, the MACD line was in the oversold zone, limiting the downward potential of the GBP / USD pair. No other signals appeared the rest of the day.
Trading recommendations for February 9
Pressure on the pound eased after the Bank of England did not mention anything about interest rates. In fact, demand for GBP / USD increased again because of this, especially yesterday afternoon.
As for today, movement will be influenced by latest macro statistics in the United States. In particular, on small business optimism and rate of vacancy and turnover in the country. However, its effect will not be very serious, so the pound may still grow in the market.
For long positions:
Buy the pound when the quote reaches 1.3749 (green line on the chart), and then take profit at the level of 1.3811 (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 1.3751 (red line on the chart), and then take profit at the level of 1.3682. Do this when the price drops below 1.3750.
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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