Analysis of transactions in the EUR / USD pair
Strong EU reports set off a rally in the market yesterday, thereby forming a buy signal in the euro. However, traders had no choice but to ignore it because the MACD line, at that time, was in the overbought zone.
Trading recommendations for May 7
Pay attention to the upcoming macroeconomic reports today, as well as on the statements from the European Commission and the European Central Bank. Getting strong statistics from France, Germany and the US will not only increase volatility, but also raise demand for the European currency.
For long positions:
Enter a long position when the quote reaches 1.2076 (green line on the chart), and then take profit around the level of 1.2125. Euro will turn up if the US publishes a strong labor market report and if the ECB comments on EU inflation. 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 1.2045 (red line on the chart), and then take profit at the level of 1.1993. Euro will decline if the US publishes a weak 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
Three signals appeared in the market yesterday. However, only one of them was successful. This is because when the pound hit 1.3917 for the first time, the MACD line was in the overbought area, so traders had to ignore the buy signal. Fortunately on the second time, the MACD line had already moved close to zero, so the pound was able to climb by as much as 15 pips.
As for the sell signal at 1.3877, traders had to ignore it because the MACD line was in the oversold area.
Trading recommendations for May 7
Pay attention to the upcoming statements of Bank of England member Ben Broadbent. At the same time, expect volatility to jump when the US publishes its monthly employment report for April. If the data exceeds expectations, demand for the pound will surge.
For long positions:
Enter a long position when the quote reaches 1.3917 (green line on the chart), and then take profit at the level of 1.3984 (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 1.3889 (red line on the chart), and then take profit at the level of 1.3835. Pound will trade downwards if the US releases a weak 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 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.
