Analysis of transactions in the EUR / USD pair

There were no market signals on Monday so bearish traders failed to push EUR / USD to 1.1741 and bullish traders were not able to bring the quote to 1.1779. Despite this, the market direction remained bearish, which is likely to lead to a further decline in the pair.

It was the recently published data on German foreign trade balance and EU investor confidence that kept the market balanced yesterday, but in the afternoon the pair declined because the statements from FOMC were hawkish, increasing demand for dollar.

Today, the market will move depending on the reports on business sentiment in Germany and the Euro area. If the indices show a decline, EUR / USD will drop even lower. Then, in the afternoon, the situation may exacerbate as strong data on the US labor market may provoke a jump in dollar demand and accordingly, a further decrease in the pair.

For long positions:

Open a long position when euro reaches 1.1754 (green line on the chart), and then take profit at the level of 1.1801. Demand will increase if the Euro area publishes good economic data. But before buying, make sure that the MACD line is above zero, or is starting to rise from it.

It is also possible to buy at 1.1730 and 1.1690, but the MACD indicator line must be in the oversold area in order to bring about a market reversal to 1.1754 and 1.1801.

For short positions:

Open a short position when euro reaches 1.1730 (red line on the chart), and then take profit at the level of 1.1690. A decline will occur if the Euro area releases weak economic reports. But before selling, make sure that the MACD line is below zero, or is starting to move down from it.

It is also possible to sell at 1.1754 and 1.1801, but the MACD line must be in the overbought area in order to provoke a market reversal to 1.1730.

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

There was a signal to buy in the market on Monday, but it had to be ignored because it came when the MACD line was far away from zero. A similar scenario occurred right after that, but this time it was over the signal to sell, which came when the indicator was way below zero. Fortunately by midday, the indicator moved up from zero, however, the increase was still not as large as expected. As a result, bullish traders gradually lost initiative, so the market returned under the control of bearish traders.

But today there may be an upward correction in the market since there are no UK statistics scheduled to be published. Growth, however, will not last long because by afternoon, US will release reports on the labor market, which will most likely increase demand for dollar and provoke a decline in GBP / USD.

For long positions:

Open a long position when pound reaches 1.3855 (green line on the chart), and then take profit at the level of 1.3891 (thicker green line on the chart). But before buying, make sure that the MACD line is above zero, or is starting to rise from it.

It is also possible to buy at 1.3832 and 1.3797, but the MACD line should be in the oversold area in order to set off a market reversal to 1.3855 and 1.3891.

For short positions:

Open a short position when pound reaches 1.3832 (red line on the chart), and then take profit at the level of 1.3797. A decline could occur if US releases good macro statistics. But before selling, make sure that the MACD line is below zero, or is starting to move down from it.

It is also possible to sell at 1.3855 and 1.3891, but the MACD line should be in the overbought area in order to trigger a market reversal to 1.3832 and 1.3797.

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.