Analysis and trading recommendations for the EUR/USD and GBP/USD pairs on December 24

Analysis of transactions in the EUR / USD pair

There were three deals in the euro yesterday. During the European session, euro bulls tested the level of 1.2198, however, by that time, the MACD line was not in the best position, therefore, growth did not take place. Then, the price was tested at 1.2166, but it was impossible to sell the euro there since the MACD line is in the oversold zone. It was only in the afternoon, when the quote tested 1.2198, that the euro rose by 20 pips in the market, which, given the low market volatility, was a pretty good move.

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Trading recommendations for December 24

Since today is Christmas Eve and no important economic report is scheduled to be published, all attention will be centered on the Brexit trade agreement.

Yesterday, news emerged that the two parties are close to signing it, therefore, it is best to bet on the further strengthening of the euro this weekend.

Aside from that, markets are closed tomorrow, so consider this when trading.

For long positions:

Buy the euro when the quote reaches 1.2230 (green line on the chart), and then take profit around the level of 1.2284. However, growth can only happen if there is good news on Brexit. In particular, a strong upward move will occur if a trade agreement is signed.

But keep in mind that before buying, make sure that the MACD line is above zero and is starting to rise from it.

For short positions:

Sell the euro after the quote reaches 1.2193 (red line on the chart), and then take profit at the level of 1.2144. Pressure on risky assets is unlikely to increase this weekend, so be very careful when selling.

Also, keep in mind that before selling, make sure that the MACD line is below zero and is starting to move down from it.

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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

Demand for the pound grew on the news that a Brexit trade agreement may be signed soon. In the morning, long positions from 1.3432 failed to bring a large rise, but after the good news on Brexit emerged, GBP / USD broke above 1.3432, forming an excellent entry point into long positions. By that time, the MACD line was also close to zero, which confirms that the positions in the market were correct.

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Trading recommendations for December 24

The British pound continues to grow even amid the introduction of strict quarantine measures in the UK. This is because many market participants are awaiting the signing of a Brexit trade agreement. To add to that, no important economic report is scheduled to be released today, so all attention is centered on the trade deal, the conclusion of which will not only strengthen the pound, but also lead to the renewal of yearly highs.

For long positions:

Buy the pound when the quote reaches 1.3565 (green line on the chart), and then take profit at the level of 1.3636 (thicker green line on the chart). Good news on Brexit may lead to a price jump in GBP / USD.

But keep in mind that before buying, make sure that the MACD line is above zero and is starting to rise from it.

For short positions:

Sell the pound after the quote reaches 1.3522 (red line on the chart), and then take profit at the level of 1.3463. Bad news on Brexit, as well as on the situation with the coronavirus, will resume the downward trend in the GBP / USD pair.

Also, keep in mind that before selling, make sure that the MACD line is below zero and is starting to move down from it.

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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