Analysis of transactions in the EUR / USD pair
Several market signals appeared on Wednesday, but none of them were successful because all came when the MACD line was not in a good area. For example, the sell signals appeared when the indicator was at the oversold area, while the buy signal appeared when the MACD line was at the overbought area.
Trading recommendations for July 2
Pay attention to the upcoming speech of ECB President Christine Lagarde, as well as to the data on Eurozone producer prices. Undoubtedly, both will have significant impacts on the market and will drive the direction of EUR / USD. Upcoming data on US nonfarm sector is also important because a good performance in the indicator could set off an increase in dollar. If this happens, EUR / USD will decline.
For long positions:
Open a long position when euro reaches 1.1857 (green line on the chart), and then take profit around the level of 1.1911. EUR / USD will rise if the Eurozone publishes a strong report on producer prices. 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 euro reaches 1.1835 (red line on the chart), and then take profit at the level of 1.1803. Further decline will occur if the US releases strong data on its economy. 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
The market signal on Thursday was to sell, and it fortunately coincided with the MACD line's descent below zero. It resulted in a 35-pip downward movement. However, GBP / USD was not able to reach the target value, which is 1.3760.
Trading recommendations for July 2
Latest data on UK manufacturing led to a slight increase in GBP / USD, which could continue today if US publishes weak economic indicators. But if it reveals strong data on the economy, another wave of decline will occur in the pair.
For long positions:
Open a long position when pound reaches 1.3782 (green line on the chart), and then take profit at the level of 1.3838 (thicker green line on the chart). Growth may occur if US publishes weak economic indicators. 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 1.3749 (red line on the chart), and then take profit at the level of 1.3713. GBP / USD will come under pressure if US releases strong weak data on its economy. 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.
