Analysis of transactions in the EUR / USD pair

Yesterday seems to be a bad trading day for EUR / USD. Given the low volatility of trading, two signals appeared on the market, one of which was unprofitable, while the other had to be ignored.

The first one was to sell at 1.2088, and during that time, the MACD line has just moved to the negative zone which should've supported the signal, but alas, the downward movement did not take place. Then, the buy signal at 1.2112 was false, since at that moment, the MACD line was in the overbought area.

Trading recommendations for January 29

Demand for the euro will depend today on economic reports from the EU. In particular, on consumer spending, GDP and unemployment reports of France and Germany. Then, in the afternoon, many will be waiting for the report on US income and spending, which, to a relative extent, affects the overall US GDP. At the same time, data released by the University of Michigan on consumer sentiment could also strengthen the position of the dollar, provided that it comes out much better than expected.

For long positions:

Buy the euro when the quote reaches 1.2112 (green line on the chart), and then take profit around the level of 1.2164. EUR / USD will rally if there is good economic data from the EU.

But keep in mind that before buying, the MACD line should be above zero and is starting to rise from it.

For short positions:

Sell the euro after the quote reaches 1.2088 (red line on the chart), and then take profit at the level of 1.2041. EUR / USD will trade downwards if there is bad economic data from the EU and good economic data from the US.

Of course, before selling, it is important to make sure that the MACD line is below zero and 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

Two signals appeared in GBP / USD yesterday, both of which were quite profitable.

The first one is to sell at 1.3659, and during that time, the MACD line has just moved in the oversold zone, so as a result, GBP / USD increased by about 30 pips in the market. Then, in the afternoon, a buy signal appeared at 1.3683. At this time, the MACD line is in the positive zone, so the quote moved 50 pips up, although not reaching the target level which is 1.3756.

Trading recommendations for January 29

Data for the US economy will be released today. In particular, it will be about the growth of income and expenses of Americans, which have a relative impact on GDP. The University of Michigan is also set to release a report on consumer sentiment, which could also strengthen the US dollar provided that it comes out much better than expected.

For long positions:

Buy the pound when the quote reaches 1.3716 (green line on the chart), and then take profit at the level of 1.3756 (thicker green line on the chart). GBP / USD will climb higher if the quote breaks out of the yearly highs.

But keep in mind that before buying, make sure that the MACD line is above zero and is starting to rise from it.

For short positions:

Sell the pound after the quote reaches 1.3693 (red line on the chart), and then take profit at the level of 1.3643. GBP / USD will trade downwards if there is good economic data from the US.

Keep in mind that before selling, make sure that the MACD line is below zero and 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.