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Analysis of transactions and tips for trading EUR/USD
The test of 1.2206 happened when the MACD line was just starting to move above zero, which was a pretty good signal to buy. However, the pair only moved by 25 pips before going down again.
In the afternoon, pound tested 1.2266, prompting a signal to sell. This resulted in a price decrease of about 30 pips.
Pound continued to rise on Tuesday because of the reports on jobless claims, the unemployment rate and change in average UK earnings. Most likely, this bullish trend will extend today as there is a CPI report due out in the morning. An increase in the figure will open the way to another monthly high. The UK house price index data will not be of much interest.
Meanwhile, in the afternoon, data on US retail trade will come out, which, if shows a sharp rise, will prompt a surge in dollar demand. PPI and industrial output reports may also help the currency advance, as will the speeches of some FOMC members. This could result in a decline in GBP/USD.
For long positions:
Buy pound when the quote reaches 1.2305(green line on the chart) and take profit at the price of 1.2374 (thicker green line on the chart). Growth could occur if inflation data in the UK rises. However, make sure that when buying, the MACD line is above zero or is starting to rise from it. Pound can also be bought at 1.2269, but the MACD line should be in the oversold area as only by that will the market reverse to 1.2305 and 1.2374.
For short positions:
Sell pound when the quote reaches 1.2269 (red line on the chart) and take profit at the price of 1.2215. Pressure will increase if buyers are not active at the new highs after the inflation data. However, make sure that when selling, the MACD line is below zero or is starting to move down from it. Pound can also be sold at 1.2305, but the MACD line should be in the overbought area as only by that will the market reverse to 1.2269 and 1.2215.
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 decision based on the current market situation is an inherently losing strategy for an intraday trader.
InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.
