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

Analysis of transactions in the EUR / USD pair

Short positions set at 1.1915 brought a fairly large profit, especially since the MACD line was well below zero. More specifically, it allowed the euro to decrease by around 30 pips in the market.

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Trading recommendations for March 24

Euro declined quite sharply yesterday, when German Chancellor Angela Merkel and other federal leaders agreed to reimpose quarantine measures on Easter. It prompted investors to speculate another lockdown in the Euro area, since there is a chance that restrictions will retain even after Easter.

Today, many macroeconomic reports are scheduled to be released. More specifically, these are data on business activity and composite PMI in the whole Euro area. Similar data also awaits in the afternoon, but it would be for the US economy. A report on orders for durable goods will also be published, followed by another speech from the Federal Reserve.

For long positions:

Enter a long position when the quote reaches 1.1852 (green line on the chart), and then take profit around the level of 1.1881. However, it is unlikely that the price will grow today because almost all indicators are pointing to a further downwards move. Some European countries have also reimposed strict quarantine measures, and only strong macroeconomic data would reverse the ongoing bearish trend.

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

For short positions:

Enter a short position when the quote reaches 1.1835 (red line on the chart), and then take profit at the level of 1.1808. Pressure could return at any moment, especially amid weak reports on the EU economy. Statements from the Federal Reserve could also lead to a surge in volatility.

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

Long positions set at 1.3845 brought losses even though the MACD line has moved up from zero. But in the afternoon, short positions at 1.3815 made profit, when the pound dropped by 45 pips and hit 1.3767.

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Trading recommendations for March 24

Deteriorating relations between the UK and EU dragged the pound down yesterday. And today, this scenario could continue if the reports on business activity and CPI in the UK come out weaker than the forecasts. Similar data will also be released in the afternoon, but this time it would be on the US economy. Many expect it to cause a surge in volatility, but towards a further fall in GBP / USD.

For long positions:

Enter a long position when the quote reaches 1.3735 (green line on the chart), and then take profit at the level of 1.3798 (thicker green line on the chart). However, the price will increase only if the data on the UK economy comes out better than expected.

Make sure that when you buy the pound, the MACD line is above zero and is starting to rise from it.

For short positions:

Enter a short position after the quote reaches 1.3699 (red line on the chart), and then take profit at the level of 1.3652. Weak data on the UK economy will increase pressure on GBP / USD.

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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