Analysis of transactions in the EUR / USD pair
Several buy signals appeared in the market yesterday. However, some of them had to be ignored because they happened when the MACD line was at the overbought area. But once the indicator moved back to zero or rose slightly above it, euro climbed up, following the trading signals. The first growth was about 20 pips, while the second was 10 pips.
Trading recommendations for May 18
Pay attention to the upcoming data today as those will certainly affect the market. If the EU publishes strong economic reports, the euro will be able to trade higher. Upcoming US data are also unlikely to shake the market, so euro's bullish trend may continue all throughout the day. It may even hit new monthly highs.
For long positions:
Enter a long position when the quote reaches 1.2176 (green line on the chart), and then take profit around the level of 1.2229. Euro will turn up if the EU publishes strong economic reports. But before buying, make sure that the MACD line is above zero, or is starting to rise from it.
For short positions:
Enter a short position when the quote reaches 1.2174 (red line on the chart), and then take profit at the level of 1.2102. Euro may turn down in the morning if the EU publishes weak economic activity. But in the afternoon, price may recover if the US releases weak economic reports. And before you sell, make sure that the MACD line is below zero, or 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
Several trading signals appeared in the market yesterday. The first one is to buy at 1.4103, however, it had to be ignored because the MACD line was at the overbought area. Fortunately on the second try, the MACD line moved slightly above zero, so the pound was able to climb by 50 pips. It reached the target level, which is 1.4155.
Trading recommendations for May 18
Pay attention to the upcoming UK data as those will certainly affect investor sentiment. Strong figures will lead to another rise in the pound, while weaker-than-expected numbers will certainly turn the market around. Then in the afternoon, US data is unlikely to shake the market, so the pound should continue trading upwards.
For long positions:
Enter a long position when the quote reaches 1.4185 (green line on the chart), and then take profit at the level of 1.4235 (thicker green line on the chart). Pound will trade higher if the UK publishes a strong labor market report. But before buying, make sure that the MACD line is above zero, or is starting to rise from it.
For short positions:
Enter a short position when the quote reaches 1.4155 (red line on the chart), and then take profit at the level of 1.4095. But it is not really ideal to sell in the market since the trend is currently bullish. In any case, before selling, make sure that the MACD line is below zero, or 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.
