Analysis and trading recommendations for the EUR/USD and GBP/USD pairs on March 12

Analysis of transactions in the EUR / USD pair

A signal to buy the euro appeared yesterday. Thankfully, it was at the time that the MACD line was moving up from zero, therefore, all those who entered the market (on this signal) gained profit of approximately 30 pips.

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Trading recommendations for March 12

Euro traded upwards yesterday after the European Central Bank announced some changes in its bond buying program, which should take effect on the 2nd quarter. To add to that, the latest data on the US labor market did not support the dollar, even though it came out much better than the forecasts of economists.

Today, reports on German CPI and EU industrial production will be published, and they may lead to further growth in the euro provided that the figures are much stronger than expected. Then, in the afternoon, the University of Michigan will release data on US producer prices and consumer sentiment, but these indicators are unlikely to make a huge impact on the balance of power in the market.

For long positions:

Buy the euro when the quote reaches 1.1979 (green line on the chart), and then take profit around the level of 1.2025. EUR / USD will trade upwards if there are good economic reports for the Euro area.

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

For short positions:

Sell the euro after the quote reaches 1.1941 (red line on the chart), and then take profit at the level of 1.1874. Pressure on the euro will return if there are weak economic reports from Germany and the whole Eurozone.

Before selling, be 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

Three buy signals appeared in the market yesterday, and all of them were very successful. This is because all of the test at 1.3949 coincided with the MACD line moving up from zero, but only the third one was able to push the pair by more than 25 pips, almost reaching the target level, which is 1.4008.

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Trading recommendations for March 12

Today, particular attention should be given to the report on UK GDP, as such will certainly affect trading volume and market sentiment. Data on UK industrial production and activity in the service sector will also be released, which could lead to a sharp rise in GBP / USD provided that the indicators go beyond the forecasts of economists. Then, in the afternoon, the University of Michigan will publish its report on US producer prices and consumer sentiment.

For long positions:

Buy the pound when the quote reaches 1.3991 (green line on the chart), and then take profit at the level of 1.4045 (thicker green line on the chart). Price will climb higher if there are strong economic reports for the UK.

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 1.3952 (red line on the chart), and then take profit at the level of 1.3907. Weak data on the UK economy may increase pressure on the pound, which in turn will resume the downward trend in GBP / USD.

Of course, when 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

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