13.05.202111:17 Forex Analysis & Reviews: Analysis and trading recommendations for the EUR/USD and GBP/USD pairs on May 13

Analysis of transactions in the EUR / USD pair

Several signals appeared in the market yesterday. However, only one was successful. The first two buy signals had to be ignored because the MACD line was at the overbought area. Fortunately, in the afternoon, a sell signal appeared when the MACD line was slightly below zero. Hence, the euro was able to climb down by 35 pips.

Trading recommendations for May 13

Pay attention to the upcoming US data today as those will certainly affect investor sentiment. Strong figures will lead to a rally in dollar and accordingly, a decline in euro. Statements from the Federal Reserve may also shake the markets.

For long positions:

Enter a long position when the quote reaches 1.2095 (green line on the chart), and then take profit around the level of 1.2145. 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 1.2065 (red line on the chart), and then take profit at the level of 1.1994. Euro will turn down if the US publishes a strong labor market report. 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

Several signals appeared in the market yesterday. However, none of them were successful. This is because when a buy signal appeared at 1.4132, the MACD line was at the overbought area, thereby limiting the upside potential of the pound. Likewise, when a sell signal appeared at 1.4100, the MACD line was at the oversold area, limiting the downside potential of the currency.

Trading recommendations for May 13

Pay attention to the upcoming US data today as those will significantly affect investor sentiment. Strong figures will lead to a rally in dollar and accordingly, a sharp decline in pound. Statements from the Bank of England and Federal Reserve may also shake the markets.

For long positions:

Enter a long position when the quote reaches 1.4078 (green line on the chart), and then take profit at the level of 1.4134 (thicker green line on the chart). 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 1.4052 (red line on the chart), and then take profit at the level of 1.4005. Pound will trade downwards if the US publishes strong 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 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.