Analysis of transactions in the EUR / USD pair

There was a signal to buy in the market yesterday, however, it did not bring profit because there was no large movement in EUR / USD. In fact, after a 7-pip increase, the pair turned around and declined again. The cause is most probably the weak data on manufacturing activity, which was much worse than expected.

Today, a report on EU GDP will be released, and it will most likely provoke an upward correction provided that the figure exceeds expectations. Then, in the afternoon, growth may continue if US retail trade data turn out worse than the forecast. But the most important is the statements from Fed Chairman Jerome Powell because if it does not hint at a policy change, EUR / USD will rise higher.

For long positions:

Open a long position when euro reaches 1.1777 (green line on the chart), and then take profit at the level of 1.1803. EUR / USD will climb higher if the Euro area publishes better-than-expected economic reports. 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 1.1763 and 1.1741, but the MACD indicator line must be in the oversold area in order to bring about a market reversal to 1.1777 and 1.1803.

For short positions:

Open a short position when euro reaches 1.1763 (red line on the chart), and then take profit at the level of 1.1741. A decline will occur in the event of weak data on GDP, which will further push expectations for early tapering. 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 1.1777 and 1.1803, but the MACD line must be in the overbought area in order to provoke a market reversal to 1.1763.

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

Several indicators were hinting at a price increase so it was ideal to buy in the market yesterday. For example, the MACD line was at the oversold area in the morning, which allowed traders to set up long positions and provoke a large jump. Then, afterwards, the indicator moved up from zero, so GBP / USD rose again, albeit smaller.

Today, a report on UK employment will be released, but it is unlikely to help pound continue a rally. Even if the figures turn out better than expected, real unemployment will remain hidden due to the support measures provided by the authorities. But in the afternoon, there is a chance that the pair will rise again since weak US retail trade data will hit dollar demand. Statements from Fed Chairman Jerome Powell are important as well because if it does not hint at a policy change, dollar will most likely slump deeper.

For long positions:

Open a long position when pound reaches 1.3831 (green line on the chart), and then take profit at the level of 1.3872 (thicker green line on the chart). GBP / USD will trade higher if UL reports strong labor market conditions. 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 1.3812 and 1.3781, but the MACD line should be in the oversold area in order to set off a market reversal to 1.3831 and 1.3872.

For short positions:

Open a short position when pound reaches 1.3812 (red line on the chart), and then take profit at the level of 1.3781. A decline will occur if UK publishes poor labor market indicators and if the Fed hints at potential early tapering. 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 1.3831 and 1.3872, but the MACD line should be in the overbought area in order to trigger a market reversal to 1.3812 and 1.3781.

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.