Analysis of transactions in the EUR / USD pair
A buy signal appeared in the market yesterday. However, it had to be ignored because the MACD line, during that time, was in the overbought zone. There was no strong upward move because of this.
Trading recommendations for March 10
Euro traded upwards in the morning due to strong reports from Germany and Italy. However, in the afternoon, prices began to drop again because of disappointing figures on EU GDP. This limited the upward potential of the euro, which is already experiencing many growth problems lately.
Today, particular attention should be paid to the reports on industrial production in France and consumer price index in the US. If the US CPI turns out to be better than expected, a strong decline may be observed in EUR / USD.
Investors should also monitor the yield on 10-year US bonds, as such have been driving the US dollar lately. Good inflation will lead to a sharp collapse of bonds and an increase in their yields, which will strengthen the position of the dollar.
For long positions:
Buy the euro when the quote reaches 1.1906 (green line on the chart), and then take profit around the level of 1.1964. EUR / USD will trade upwards if reports on US inflation come out weaker than expected.
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 1.1870 (red line on the chart), and then take profit at the level of 1.1813. Pressure on the euro will return if inflation in the US turns out to be better than expected. This is because such a scenario will lead to the continued growth of Treasury yields, which, to date, have been driving the US dollar up.
But before selling, be sure that the MACD line is below zero and 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
GBP / USD left the side channel yesterday, but ran into a strong resistance around 1.3872. Nevertheless, a buy signal was formed in the market, and it coincided with the MACD line moving up from zero. As a result, prices grew by more than 40 pips.
Trading recommendations for March 10
Data on UK retail sales, as well as statements from the Bank of England, did not have an impact on the pound yesterday, even though Chief Economist Andy Haldane talked a lot about bond yields and the labor market, which is a decisive moment in determining the direction of GBP / USD.
Today, particular attention will be given to technical support and resistance levels, on which the further direction of the pair depends. More important data will also be released in the afternoon, which may lead to a sharp rise in the dollar. To put it more precisely, better-than-expected US CPI will result in an increase in USD and accordingly, a decline in GBP.
Attention will also be given on the yield of 10-year US bonds, which have been driving the US dollar lately. Good inflation will lead to a sharp collapse in bonds and in turn, an increase in their yields.
For long positions:
Buy the pound when the quote reaches 1.3896 (green line on the chart), and then take profit at the level of 1.3954 (thicker green line on the chart). Price will climb higher if the pound breaks above 1.3896, but there is very little chance for that.
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 1.3855 (red line on the chart), and then take profit at the level of 1.3789. It is best to open short positions in the market because the trend in GBP / USD is bearish. Also, good data on US inflation will strengthen the position of the dollar.
Of course, when selling, make sure that the MACD line is below zero and 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