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

Analysis of transactions in the EUR / USD pair

Three signals appeared in the market last Friday, but only two of them were successful. This is because the first sell signal appeared when the MACD line was in the oversold area, significantly limiting the downward potential of the euro. But by afternoon, the MACD line finally moved down from zero, so the currency was able to decline by around 40 pips. Then, the buy signal that followed pushed the euro up by about 20 pips.

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Trading recommendations for May 24

Euro fell sharply last Friday because of the statements from the European Central Bank. Whereas today, the market will be driven by the statements from the Federal Reserve, which will be released this afternoon.

For long positions:

Enter a long position when the quote reaches 1.2196 (green line on the chart), and then take profit around the level of 1.2240. Euro may trade upwards in the afternoon, but it is unlikely to move beyond the side channel. 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 1.2169 (red line on the chart), and then take profit at the level of 1.2126. Euro will decline if bearish traders manage to push the quote below 1.2169. But before selling, make sure that the MACD line is below zero, or 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 signals appeared in the market last Friday, but only one of them was successful. This is because the first buy signal appeared when the MACD line was in the overbought area, significantly limiting the upward potential of the pound. But by afternoon, the MACD line finally moved up from zero, so the currency was able to climb by about 30 pips. The sell signal that followed had to be ignored as well because it appeared when the MACD line was in the oversold area.

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Trading recommendations for May 24

Strong UK data pushed the pound up last Friday. However, before the day ended, many traders closed their positions, which prevented the currency from hitting new all-time highs.

Today, pay attention to the statements of the Bank of England, as those will significantly affect the market. If Andrew Bailey declares that the central bank will maintain its current monetary policy, then pressure will rise on GBP / USD.

For long positions:

Enter a long position when the quote reaches 1.4163 (green line on the chart), and then take profit at the level of 1.4230 (thicker green line on the chart). Pound will trade upwards if the Bank of England releases unexpected statements. 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 1.4135 (red line on the chart), and then take profit at the level of 1.4082. Pound will decline if the Bank of England declares that it would maintain its current monetary policy. But before selling, make sure that the MACD line is below zero, or 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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