Analysis of transactions in the EUR / USD pair
Strong reports from the US provided very good support to the dollar. As a result, many sell signals appeared in EUR/USD. But only the second test of 1.2144 was profitable and pushed the euro to move down by more than 50 pips.
Trading recommendations for March 1
A number of macroeconomic reports, both from the US and EU, are scheduled to be published today. Then, in the afternoon, representatives from the Federal Reserve and European Central Bank will speak, and they will probably talk a lot about profitability and measures to contain it, which will strengthen the position of the US dollar. Good reports on the US economy will add optimism to dollar bulls, therefore, the best option is to open short positions in the market.
For long positions:
Buy the euro when the quote reaches 1.2104 (green line on the chart), and then take profit around the level of 1.2157. EUR/USD will trade upwards if reports from Italy and Germany turn out to be better than expected. However, a strong upward move should not be expected because the trend in the market is actually bearish.
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 1.2062 (red line on the chart), and then take profit at the level of 1.1999. Pressure on the euro will continue if Treasury yields in the US increase further. Poor data in the EU will also push prices even lower.
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 sell signal appeared in the market last Friday. However, it had to be ignored because the MACD line, during that time, was in the oversold zone. No other signal appeared for the rest of the day.
Trading recommendations for March 1
Strong reports from the US led to a decline in GBP/USD last weekend. If the reports scheduled to be published today give off the same sentiment, price will drop even further, although not as strong, since upcoming production data from the UK should provide support for the pound, even if just a little bit. In any case, the best option is to short the GBP/USD pair.
For long positions:
Buy the pound when the quote reaches 1.4015 (green line on the chart), and then take profit at the level of 1.4126 (thicker green line on the chart). GBP/USD will trade upwards only if there are good 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 1.3959 (red line on the chart), and then take profit at the level of 1.3876. Strong data from the US will lead to a sharp drop in GBP/USD.
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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