Analysis and trading recommendations for the EUR/USD and GBP/USD pairs on June 7

Analysis of transactions in the EUR / USD pair

Euro skyrocketed on Friday, thanks to the mixed report on US labor market. On the one hand, the amount of new jobs was much lower than expected, while on the other hand, the unemployment rate has dropped, which could force the Federal Reserve to consider an early curtailment of its bond purchase program.

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Trading recommendations for June 7

Pay attention to the upcoming production report from Germany and investor confidence from the whole Euro area, as both will most likely deliver significant impacts on the market. Strong figures will push euro up because it would mean that citizens are confident in a much stronger recovery of the EU economy.

For long positions:

Enter a long position when the quote reaches 1.2182 (green line on the chart), and then take profit around the level of 1.2227. Euro will trade upwards if the EU releases strong economic reports. But before buying, make sure that the MACD line is above zero, or is starting to rise from it.

For short positions:

Enter a short position when the quote reaches 1.2156 (red line on the chart), and then take profit at the level of 1.2120. Euro will decline if the Germany publishes weak economic reports. 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

Pound soared last Friday, thanks to the weak US non-farm report. But today, there is little chance that the trend will continue, as the market is more inclined to decline amid expectations of a policy change.

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Trading recommendations for June 7

Upcoming data on UK home prices and US lending are unlikely to have significant impacts on the market. Therefore, GBP/USD will most likely trade sideways, but with little control from sellers.

For long positions:

Enter a long position when the quote reaches 1.4159 (green line on the chart), and then take profit at the level of 1.4238 (thicker green line on the chart). Before buying, make sure that the MACD line is above zero, or is starting to rise from it.

For short positions:

Enter a short position when the quote reaches 1.4133 (red line on the chart), and then take profit at the level of 1.4085. Pound will drop lower if bearish traders manage to push it below 1.4133. 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

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