Analysis of transactions in the EUR / USD pair
Two signals appeared in the market yesterday, but only one of them was successful. This is because the first signal, which is to sell at 1.2044, had to be ignored because the MACD line, during that time, was in the oversold zone. Good thing that a little later, right after the release of weak fundamental reports on the European economy, a retest of 1.2044 took place. This time, the MACD line is already in a profitable zone, so EUR / USD was able to reach the target level, which is 1.1994.
Trading recommendations for March 5
Data on EU retail trade and unemployment put pressure on the European currency. Then, the statements from the Federal Reserve added more, setting off quite a massive sell-off in the market.
Today, no important data is expected, but volatility could jump after the release of US labor market data. US Treasury Secretary Janet Yellen will also speak, and she may try to influence the situation by discussing the continued growth of Treasury yields.
For long positions:
Buy the euro when the quote reaches 1.1978 (green line on the chart), and then take profit around the level of 1.2061. EUR / USD will trade upwards if reports on the US economy turn out to be 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 1.1945 (red line on the chart), and then take profit at the level of 1.1890. Pressure on the euro may return if reports on the US labor market come out much better than expected.
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
Two signals appeared in the market yesterday, but all of them had to be ignored because the MACD line, during those times, was not in a profitable zone. For example, when a sell signal appeared around 1.3930, the MACD line, during that time, was in the oversold zone. Similar scenario occurred when a buy signal appeared at 1.3966. But this time, the MACD line was in the overbought zone, which limited the upward potential of the pair.
Trading recommendations for March 5
Data on the UK construction sector kept the pound from falling, thereby setting off a false breakout at 1.3930. Meanwhile, reports on the US economy did not affect the market, but its movement was interrupted by the statements given by the Federal Reserve. The central bank’s chairman, Jerome Powell, said the economic outlook of the US is gleaming, which incited a dollar rally.
Today, reports on the US labor market will be published. Treasury Secretary Janet Yellen will also speak, and she may try to influence the situation by discussing the continued growth of Treasury yields, on which the current strength of the dollar depends.
For long positions:
Buy the pound when the quote reaches 1.3911 (green line on the chart), and then take profit at the level of 1.4008 (thicker green line on the chart). GBP / USD will trade upwards if the dollar weakens in the 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 1.3874 (red line on the chart), and then take profit at the level of 1.3805. It is best to open short positions because the trend in EUR / USD is bearish.
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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