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Analysis of transactions in the EUR / USD pair
A signal to sell appeared in the market last Friday. However, traders had to ignore it because the MACD line was at the oversold area, which significantly limits the downward potential of the currency. No other signal appeared for the rest of the day.
Trading recommendations for May 31
The strong US data that was published last Friday pushed the dollar up. However, the momentum did not last long, and the euro climbed up again before the day ended.
Today, the market is expected to remain calm, although sellers might try to repeat the bearish scenario observed last week. And if Germany and Italy publish bad CPI reports, euro will undergo more pressure.
For long positions:
Enter a long position when the quote reaches 1.2211 (green line on the chart), and then take profit around the level of 1.2266. 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 1.2181 (red line on the chart), and then take profit at the level of 1.2112. Euro will decline more if France and Germany release 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
A signal to sell appeared for the pound last Friday, but it had to be ignored because it came when the MACD line was at the oversold zone. Having the indicator there limits the downward potential of the currency, which is exactly what happened. After a slight decline below 1.4171, pound turned up and returned to its previous levels. Obviously, buyers quickly regained their positions, not allowing the bear market to continue. No other signals appeared for the rest of the day.
Trading recommendations for May 31
Volatility will be low today as the UK is on a holiday. There are also no macro statistics scheduled to be published, so the only thing that would drive the market is whether bullish traders succeed in pushing the pound above 1.4208. If not, the currency will remain in a bear market.
For long positions:
Enter a long position when the quote reaches 1.4208 (green line on the chart), and then take profit at the level of 1.4279 (thicker green line on the chart). Positive statements from the Bank of England may push the pound to new local highs. 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 1.4171 (red line on the chart), and then take profit at the level of 1.4102. 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.
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