Analysis of transactions in the EUR / USD pair

Several market signals appeared on Thursday, but only few were successful. In fact, the first one, which was to buy, had to be ignored because it came when the MACD line was at the overbought area. Fortunately on the second one, the indicator was in a good position, so EUR / USD was able to climb by 10 pips.

Then, In the afternoon, a signal to sell was formed, but it had to be ignored at first because it came when the MACD line was at the oversold area. On the second one, the indicator was in a good position, so EUR / USD moved down more than 20 pips.

Trading recommendations for July 16

Recent statements from the Federal Reserve led to a decline in EUR / USD, as did the strong data on the US labor market. But the market could reverse today if the Euro area publishes a better-than-expected inflation report. Unfortunately, growth may not last long, as the US will also release a report on retail sales. If the figure is beyond expectations, EUR / USD will decline, as such will further increase demand for dollar.

For long positions:

Open a long position when euro reaches 1.1817 (green line on the chart), and then take profit at the level of 1.1849 (thicker green line on the chart). Demand will increase if the Euro area releases a good inflation data, as such will provoke the ECB to start reconsidering an early curtailment of stimulus measures. 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 1.1801 and 1.1773, but the MACD indicator should be in the oversold area, as such would trigger a market reversal to 1.1817.

For short positions:

Open a short position when euro reaches 1.1801 (red line on the chart), and then take profit at the level of 1.1773. A decline will occur if the Euro area publishes a weak inflation data and if the US posts a strong retail sales report. 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 1.1849, but the MACD indicator should be in the overbought area, as such would trigger a market reversal to 1.1801.

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 market signals appeared on Thursday, but only few were successful. In fact, the first one, which was to buy, had to be ignored because it came when the MACD line was at the overbought area. The sell signal that followed it was no good as well, even though it coincided with correct indicators. GBP / USD did not undergo a large downward move, so bearish traders suffered from losses. Only the third buy signal provoked a strong movement because by then, the MACD line was moving up from zero. GBP / USD climbed up by 40 pips, which induced another sell signal. It coincided with the MACD line being at the overbought area.

Trading recommendations for July 16

Recent statements from the Federal Reserve led to a decline in GBP / USD, as did the latest data on the UK labor market, which posted an increase in the unemployment rate. If US publishes a strong report on retail sales today, the downward momentum will continue, as such will further increase demand for dollar.

For long positions:

Open a long position when pound reaches 1.3842 (green line on the chart), and then take profit at the level of 1.3890 (thicker green line on the chart). Demand will increase if US releases a weak retail sales report. 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 1.3780, but the MACD indicator should be in the oversold area, as such would trigger a market reversal to 1.3842.

For short positions:

Open a short position when pound reaches 1.3821 (red line on the chart), and then take profit at the level of 1.3780. A decline may occur if US releases a strong retail sales report. 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 1.3842 and 1.3890, but the MACD indicator should be in the overbought area, as such would trigger a market reversal to 1.3821.

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.