Analysis of transactions in the EUR / USD pair
Two buy signals emerged for the euro yesterday. The first is at 1.2175, which should have given quite a lot of profit since the MACD line, at that time, is located in the positive zone. Instead, it did not give the desired result and led to a loss of profit. As for the second buy signal at 1.2175, the MACD line at that time indicated that the pair was overbought, which means that it was a false signal.
Trading recommendations for January 13
The ECB will have a press conference today. If its president, Christine Lagarde announces an expansion in the bond purchase program, demand for the euro may decrease sharply. At the same time, in the afternoon, economic reports from the US will be published. If data on inflation comes out better than expected, demand for the dollar will increase, which accordingly would lead to a drop in EUR / USD.
For long positions:
Buy the euro when the quote reaches 1.2227 (green line on the chart), and then take profit around the level of 1.2273. EUR / USD will rally if the ECB decides not to change its monetary policy.
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 1.2202 (red line on the chart), and then take profit at the level of 1.2142. EUR / USD will trade downwards if the upcoming US data indicates an improvement in the US economy.
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
Several buy signals emerged for the pound yesterday. The first is at the price level of 1.3555, however, it gave the exact opposite, since everything on the MACD line indicated that the market was overbought. Fortunately, long positions set at 1.3555 managed to gain back the losses, as the MACD line, at that time, moved into the positive zone. The deal brought over 40 pips of profit. Then, afterwards, GBP / USD went to the target level of 1.3623, which gave about 70 pips of profit.
Trading recommendations for January 13
Demand for the pound rose yesterday after the Bank of England said it would not lower interest rates to negative levels. However, today, a report on US inflation is on the way, and a good performance could lead to an increase in the US dollar and accordingly, a decrease in GBP / USD. Aside from that, the pound is currently at the yearly highs, and it will not be easy to break above this range.
For long positions:
Buy the pound when the quote reaches 1.3701 (green line on the chart), and then take profit at the level of 1.3767 (thicker green line on the chart).
But 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 1.3664 (red line on the chart), and then take profit at the level of 1.3611. GBP / USD will continue to trade downwards if US data comes out better 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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