Analysis of transactions in the EUR / USD pair
There were several market signals on Wednesday, but only those that appeared in the afternoon were successful. As such, the first signal to buy did not end up as expected even though the MACD line was at the oversold area. But by afternoon, EUR / USD rose by more than 20 pips, after the release of weaker-than-expected US data.
It was the recently published data on US inflation that pushed the pair up yesterday, as the CPI reports from Germany and Italy did not deal much effect on the market even though they exceeded expectations.
Today, EUR / USD will move depending on the reports on the Euro area and United States. If EU releases good data on industrial production, the pair may climb to new highs. But if US reports better-than-expected data on jobless claims and producer prices, demand for dollar will increase, which will result in a decline in EUR / USD.
For long positions:
Open a long position when euro reaches 1.1750 (green line on the chart), and then take profit at the level of 1.1780. Demand will increase if the Euro area publishes good statistics on industrial production. 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 1.1732 and 1.1705, but the MACD indicator line must be in the oversold area in order to bring about a market reversal to 1.1750 and 1.1780.
For short positions:
Open a short position when euro reaches 1.1732 (red line on the chart), and then take profit at the level of 1.1705. A decline will occur if the Euro area releases weaker-than-expected macro statistics and if US publishes strong labor market data. 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 1.1750 and 1.1780, but the MACD line must be in the overbought area in order to provoke a market reversal to 1.1732.
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 were several signals to sell in GBP / USD on Wednesday. However, the first one had to be ignored because it appeared when the MACD line was far away from zero. Then, as soon as the indicator moved below zero, traders were able to open short positions, which, in turn, led to a 20-pip decline in the market. Bears managed to push the pair down by another 20 pips in the afternoon, when the MACD line was at the overbought area.
Today, there may be an upward correction in the market amid better-than-expected data on UK 2nd quarter GDP. But if the figure is disappointing, there will be another decline in the pair. There will also be a report on US jobless claims and producer prices, which could provoke a rise in dollar and decrease in GBP / USD if the data exceeds expectations.
For long positions:
Open a long position when pound reaches 1.3879 (green line on the chart), and then take profit at the level of 1.3940 (thicker green line on the chart). GBP / USD will climb higher if UK posts strong GDP statistics for the 2nd quarter. 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 1.3853 and 1.3805, but the MACD line should be in the oversold area in order to set off a market reversal to 1.3879 and 1.3940.
For short positions:
Open a short position when pound reaches 1.3853 (red line on the chart), and then take profit at the level of 1.3805. A decline will occur if UK releases weaker-than-expected macro statistics and if US reports good data on the labor market. 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 1.3879 and 1.3940, but the MACD line should be in the overbought area in order to trigger a market reversal to 1.3853 and 1.3805.
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.
