Analysis of transactions in the EUR / USD pair
Several trading signals appeared in EUR / USD yesterday. The first one is to sell at 1.2010, which coincided with the release of a weak report on German retail sales. But despite that, there was no sharp decline in the pair. In fact, although the signal happened when the MACD line was in a negative zone, the 15-pip drop of the euro ended with a rapid reversal in the market.
Then, in the afternoon, a signal to buy at 1.2038 appeared. This time, the MACD line has moved into a positive zone, so the euro climbed up by more than 50 pips.
Trading recommendations for March 3
The reports released yesterday did not lead to a serious decline in the euro. In fact, the data were bad only at first glance. The drop in German retail sales is actually much less than the previous month, which is a good signal for the EU. Inflation is also not that bad, even though growth continued for the second month.
Today, a report on EU and US service sectors will be published. Changes in the number of employed (in the US) will also be released, which is important because it may strengthen the position of the US dollar.
For long positions:
Buy the euro when the quote reaches 1.2100 (green line on the chart), and then take profit around the level of 1.2145. EUR / USD will trade upwards if reports from the EU turn out to be better 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 1.2069 (red line on the chart), and then take profit at the level of 1.2023. Pressure on the euro will return if data from the EU service sector comes out weak.
But before selling, be 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 buy signal appeared in the market yesterday, but it had to be ignored because the MACD line, during that time, was in the overbought zone. If the indicator was just slightly lower, it would have been an ideal entry point. In any case, the pound was lucky it was able to trade upwards.
Trading recommendations for March 3
A number of important data will be released today, which may affect the market, but on the condition that the indicators turn out to be much better, or, if you prefer, worse than the expected. To put it more precisely, the release of new UK budget may lead to a surge in volatility, especially since extending support measures will force the Bank of England to resort to changes in fiscal policy.
Meanwhile in the US, changes in the number of employed will most certainly affect the position of the US dollar.
For long positions:
Buy the pound when the quote reaches 1.3974 (green line on the chart), and then take profit at the level of 1.4047 (thicker green line on the chart). GBP / USD might grow today after the speech of UK Treasury Secretary Rishi Sunak. But everything will depend on his statement on the labor market.
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 1.3944 (red line on the chart), and then take profit at the level of 1.3890. However, do this only after the release of UK budget and service data, since the market is now definitely charged for a new wave of growth. Only this news can prevent the bulls from pushing the price to yearly highs.
Of course, when 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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