Analysis of transactions in the EUR / USD pair

Volatility was low yesterday so only one signal appeared in the market. Fortunately, it appeared when the MACD line was below zero, so the euro was able to decline by 25 pips.

It is fine if you missed the movement because the market could turn around and bounce up at any moment.

Trading recommendations for May 5

Pay attention to the upcoming macroeconomic reports today as those will certainly affect the market. For example, good data on EU PMI and PPI will lead to another growth in the euro, while strong figures on US manufacturing activity and employment will result in a rise in the dollar and accordingly, a decline in EUR / USD.

For long positions:

Enter a long position when the quote reaches 1.2040 (green line on the chart), and then take profit around the level of 1.2091. The euro will turn up if the EU publishes strong macroeconomic reports.

When 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 1.2009 (red line on the chart), and then take profit at the level of 1.1956. The euro will decline if the EU publishes weak macroeconomic 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 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 sell signals appeared in the market yesterday. However, not all of them were successful. For example, when the pound hit 1.3864, the MACD line was also below zero, so it should have set off a good decline in the market. Instead, the movement was only short and amounts roughly 10 pips. Fortunately, when the pound hit the level for the second time, the MACD line was still below zero. And this time, the downward movement was larger, about 20 pips.

Trading recommendations for May 5

Pay attention to the upcoming macroeconomic reports today as those will certainly affect the market. For example, good data on US manufacturing activity and employment will lead to another rise in the dollar and accordingly, a decline in GBP / USD.

For long positions:

Enter a long position when the quote reaches 1.3920 (green line on the chart), and then take profit at the level of 1.3986 (thicker green line on the chart). Longs are ideal at the moment because the pound is turning up ahead of the policy meeting of the Bank of England. But before opening a position, 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 1.3892 (red line on the chart), and then take profit at the level of 1.3843. 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.