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17.06.202110:53 Forex Analysis & Reviews: Analysis and trading recommendations for the EUR/USD and GBP/USD pairs on June 17

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Analysis of transactions in the EUR / USD pair

There were no market signals on Wednesday because volatility was rather low. But the sharp drop that occurred after the Fed meeting brought euro in a bear market.

Exchange Rates 17.06.2021 analysis

Trading recommendations for June 17

Pay attention to the upcoming report on EU inflation as it will influence the market today. A better-than-expected figure may push euro up a bit, while weaker data will resume the decline in EUR / USD. Then, in the afternoon, US will release reports on jobless claims and manufacturing activity, which, if turns out stronger than the forecasts, will set off another increase in dollar and accordingly, a decrease in euro and other risky assets.

For long positions:

Open a long position when euro reaches 1.2028 (green line on the chart), and then take profit around the level of 1.2065. Any rise in EUR / USD is going to be seen as a good opportunity to sell, so be careful when setting up transactions. And 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 1.1990 (red line on the chart), and then take profit at the level of 1.1946. Pressure will continue on the pair, and the breakout of yesterday's lows will form a new wave of decline in the market. But before selling, make sure that the MACD line is below zero, or is starting to move down from it.

Exchange Rates 17.06.2021 analysis

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 market signals appeared on Wednesday, but all of them had to be ignored because they came when the MACD line was not at a profitable area. For example, the buy signal appeared when the MACD line was at the overbought zone, while the sell signal appeared at the time of the Federal Reserve's interest rate decision, so it was difficult to grab hold of a precipitous drop in GBP / USD.

Exchange Rates 17.06.2021 analysis

Trading recommendations for June 17

Pound is now in a bear market. If bullish traders do not show activity today, GBP / USD may decline even lower, especially once US releases reports on jobless claims and manufacturing activity. A better-than-expected data on these indicators will push dollar op, so pound and other risky assets will dive down.

For long positions:

Open a long position when pound reaches 1.4025 (green line on the chart), and then take profit at the level of 1.4095 (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:

Open a short position when pound reaches 1.3980 (red line on the chart), and then take profit at the level of 1.3937. The announcement made by the Fed yesterday will keep GBP / USD down for a long time. But before selling, make sure that the MACD line is below zero, or is starting to move down from it.

Exchange Rates 17.06.2021 analysis

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.

Jakub Novak
Analytical expert of InstaForex
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