Analysis of transactions in the EUR / USD pair
A sell signal appeared in EUR / USD yesterday, which, together with the weak data on German economy, led to a strong decline towards 1.2130. At the same time, during that period, the MACD line was in the negative zone, which further confirms the correctness of the transaction. All in all, the downward movement was about 35 pips.
Trading recommendations for January 26
EUR / USD is expected to trade in a sideways channel today, but as soon as the US session starts, the market may shake a little, mainly due to the release of data on consumer confidence. Poor indicators will result in more pressure on the US dollar, which could return the bullish trend in EUR / USD.
For long positions:
Buy the euro when the quote reaches 1.2149 (green line on the chart), and then take profit around the level of 1.2186. EUR / USD will rally if the upcoming economic data from the US comes out weaker than expected.
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 1.2124 (red line on the chart), and then take profit at the level of 1.2081. EUR / USD is expected to trade downwards since the outlook for the EU economy is becoming despondent.
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
Two false signals appeared for GBP / USD yesterday, but thanks to the MACD line, traders managed to avoid them. Clearly, the signal to buy at 1.3714 should be ignored, especially since at that time, the MACD line was in the overbought zone. As for the signal to sell at 1.3687, the MACD line was in the sell area during that time, which clearly limited the pair’s downward potential. As a result, the downward movement was no more than 20 pips.
Trading recommendations for January 26
A report on the state of the UK labor market will be published today, and it may lead to an increase in GBP, provided that the data are much better than expected. But even if indicators come out weak, the pound is unlikely to fall much because last week, Finance Minister Rishi Sunak announced that all employment assistance programs could be extended until early summer this year.
For long positions:
Buy the pound when the quote reaches 1.3670 (green line on the chart), and then take profit at the level of 1.3721 (thicker green line on the chart). GBP / USD will trade upwards if the upcoming data on the UK labor market comes out better than expected.
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 1.3641 (red line on the chart), and then take profit at the level of 1.3595.
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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