Analysis and trading recommendations for the EUR/USD and GBP/USD pairs on June 28

Analysis of transactions in the EUR / USD pair

Several buy signals appeared in the market on Friday, but only one was successful. This is because the first signal came when the MACD line was moving up from zero, while the rest appeared at the time that the indicator was at the overbought area. Nonetheless, euro was able to climb by around 25 pips.

analytics60d97061ebfc8.jpg

Trading recommendations for June 28

Poor indicators on US income and expenses led to a decline in dollar, which, in turn, resulted in an increase in EUR / USD. But today, the market will remain calm as the only note-worthy events are speeches to be delivered by ECB board members Fabio Panetta and Jens Weidmann and Fed member John Williams. Of course, surprising statements may cause a slight surge in market volatility. There are no macro statistics scheduled to be released today.

For long positions:

Open a long position when euro reaches 1.1945 (green line on the chart), and then take profit around the level of 1.1991. But before buying, make sure that the MACD line is above zero, or is starting to rise from it.

For short positions:

Open a short position when euro reaches 1.1918 (red line on the chart), and then take profit at the level of 1.1875. But before selling, make sure that the MACD line is below zero, or is starting to move down from it.

analytics60d9706882bfd.jpg

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

Several signals appeared in the market on Friday. The first one is to sell at 1.3910, which resulted in a 15-pip decline, thanks to the MACD line moving down from zero. Then, in the afternoon, a similar scenario took place, but this time it resulted in more than 30 pips decrease.

Trading recommendations for June 28

Pound slipped last week after the Bank of England announced that they decided to leave the monetary policy unchanged. But this morning, a slight growth may occur in GBP / USD if Bank of England Chief Economist Andy Haldane, who is the most worried about inflation, discloses that he agrees with taking a wait-and-see position about the policy. In terms of macro statistics, there are no reports scheduled to be released today. Instead, what awaits in the afternoon is a speech from Fed member John Williams, which may also bring significant impact to the market.

analytics60d9706eb87e0.jpg

For long positions:

Open a long position when pound reaches 1.3920 (green line on the chart), and then take profit at the level of 1.3984 (thicker green line on the chart). Growth may occur if UK releases good reports on inflation, and if the Bank of England decides to curtail the PEPP program much earlier than scheduled. But before buying, make sure that the MACD line is above zero, or is starting to rise from it.

For short positions:

Open a short position when pound reaches 1.3885 (red line on the chart), and then take profit at the level of 1.3830. GBP / USD will come under pressure if Chief Economist Andy Haldane takes a wait-and-see position on monetary policy. But before selling, make sure that the MACD line is below zero, or is starting to move down from it.

analytics60d970742006a.jpg

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

Pages