Analysis and trading recommendations for the EUR/USD and GBP/USD pairs on March 15

Analysis of transactions in the EUR / USD pair

A signal to sell the euro appeared last Friday. However, it had to be ignored because during that time, the MACD line was in the oversold zone, which seriously limited the downward potential of the pair. So even if EUR / USD continued to fall, it was not wise to open short positions, since at any moment the market could turn in the opposite direction.

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Trading recommendations for March 15

Reports on German CPI and EU industrial production supported the euro, thereby limiting the downward potential of EUR / USD. At the same time, data on US PPI and consumer sentiment did not push the dollar higher, keeping trade in a rather narrow sideways channel.

Today, no important report is expected to be published, but attention will be focused on the EU summit which will be held in the evening. It is unlikely that it will contain new news, but speeches may be about COVID-19 vaccines and quarantine restrictions, especially since last week, Italy reimposed measures, after daily incidents surged again in the country.

For long positions:

Buy the euro when the quote reaches 1.1959 (green line on the chart), and then take profit around the level of 1.2010. However, it would be very difficult to pull the price up as the trend in EUR / USD is bearish.

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 1.1929 (red line on the chart), and then take profit at the level of 1.1890. Pressure on the euro will return if EU leaders reimpose strict quarantine measures.

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

A sell signal appeared in the market last Friday. However, it had to be ignored because the MACD line, during that time, was in the oversold zone. It significantly limited the downward potential of the pair. Nevertheless, prices still fell because of weak economic data from the UK.

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Trading recommendations for March 15

Weak data on UK GDP, as well as large decline in industrial production, led to a sharp fall in GBP / USD. And although the report on US producer prices and consumer sentiment did not provide strong support to the dollar, the bearish trend of the pound may still continue today.

For long positions:

Buy the pound when the quote reaches 1.3952 (green line on the chart), and then take profit at the level of 1.4014 (thicker green line on the chart). However, there is a small chance that price will increase, since the trend in GBP / USD is bearish.

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 1.3909 (red line on the chart), and then take profit at the level of 1.3830. Weak data on the UK economy will increase pressure on the pound, which in turn will continue 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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