Analysis of transactions in the EUR / USD pair
A sell signal appeared in the market last Friday, but it had to be ignored because it came when the MACD line was at the oversold area. Nonetheless, it set off a strong bearish trend, where if traders had short positions, it was easy to earn around 30 pips of profit.
Trading recommendations for June 21
Pay attention to the upcoming economic reports from the ECB and Bundesbank. Positive projections will help euro rally, while weaker data will resume the decline in EUR / USD. Then, in the afternoon, the Federal Reserve will hold a press conference, where if they announce future changes on monetary policy, dollar will continue to rise, while pound will collapse further.
For long positions:
Open a long position when euro reaches 1.1876 (green line on the chart), and then take profit around the level of 1.1942. Any rise in EUR / USD is going to be seen as a good opportunity to sell, so be careful when setting up transactions. And before buying, make sure that the MACD line is above zero, or is starting to rise from it.
For short positions:
Open a short position when euro reaches 1.1840 (red line on the chart), and then take profit at the level of 1.1775. Pressure will continue on the pair, and the breakout of yesterday's lows will form a new wave of decline in the market. But 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 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
Three sell signals appeared in the market last Friday, but only one was successful. This is because the first and third signal came when the MACD line was in an oversold area. Meanwhile, the second one appeared when the MACD line was going down from zero, so pound was able to move by around 50 pips. It went to 1.3826.
Trading recommendations for June 21
Pressure on pound may ease a little because there are no macro statistics scheduled for today. But in the afternoon, GBP / USD may decline again, especially if the Federal Reserve announces future changes on monetary policy, as such would result in a dollar rally.
For long positions:
Open a long position when pound reaches 1.3818 (green line on the chart), and then take profit at the level of 1.3907 (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.
For short positions:
Open a short position when pound reaches 1.3783 (red line on the chart), and then take profit at the level of 1.3727. But 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.
The material has been provided by InstaForex Company - www.instaforex.com