FX.co ★ Analysis and trading recommendations for the EUR/USD and GBP/USD pairs on February 17

Analysis of transactions in the EUR / USD pair

Two signals appeared in the market yesterday. The first one is to buy at 1.2149, which led to an increase of around 17 pips. But after that, the euro moved downwards, thereby forming a sell signal at 1.2125. And although the MACD line, at that time, was also in the negative zone, the decline was only 25 pips.

Trading recommendations for February 17

Better-than-expected GDP data for the EU led to an increase in EUR / USD, however, it was only temporary. Apparently, euro bulls are weak against the pressure created around new monthly highs. To add to that, today, the US will publish a report on retail sales, as well as minutes of the Fed's last meeting. Any news on monetary policy will affect the rate of USD.

For long positions:

Buy the euro when the quote reaches 1.2104 (green line on the chart), and then take profit around the level of 1.2147. EUR / USD will rally if there are weak economic reports from the US.

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 1.2081 (red line on the chart), and then take profit at the level of 1.2040. Pressure on the euro may return at any moment, as the risk of a downward correction is still present, albeit less pronounced. Also, a rather strong data on US GDP will encourage traders to sell the euro.

But 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

The pound fell noticeably yesterday, as a result of which a sell signal was formed at 1.3909. And since the MACD line, at that time, was also in the negative zone, GBP / USD moved down by approximately 40 pips.

Trading recommendations for February 17

UK will publish a number of economic reports today, and they will certainly influence market dynamics and sentiment. Therefore, it is best to wait for these data before opening any position in GBP / USD.

At the same time, in the afternoon, the US will publish data on retail sales, as well as minutes of the Fed's last meeting. Any news on monetary policy will affect the rate of USD.

For long positions:

Buy the pound when the quote reaches 1.3903 (green line on the chart), and then take profit at the level of 1.3957 (thicker green line on the chart). The market is clearly bullish so there is no need to panic if there is a small correction.

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 1.3871 (red line on the chart), and then take profit at the level of 1.3815. However, do so only if economic reports from the UK are weaker than expected.

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.