Black Pipper

Forex Dreamers

Simple guidelines for entering and exiting the market for novice traders. (analysis of forex transactions). Currency pairs EURUSD

Buy and sell levels EURUSD on May 4th. Analysis of transactions

Analysis of transactions

Yesterday’s movement of the euro up against the background of good activity in the manufacturing sector slowed down very quickly, and already during today’s morning trading, the pressure on the pair returned altogether. This suggests that the bearish correction, formed last Friday, is not over yet and it is quite possible that the pressure on the euro will continue further, which will lead to the renewal of new local minimums.

Today’s guidelines for getting in and out

Today there is no important fundamental data in the morning, so do not be surprised if the euro continues to lose ground after yesterday’s gains. The data on the balance of the state budget of France is unlikely to lead to any market changes, therefore I recommend waiting for more important reports in the afternoon, where the indicator on the balance of US foreign trade and changes in the volume of US manufacturing orders, together with the speech of FOMC member Mary Daly, may lead to a surge in the volatility of the pair. The best choice would be to sell the euro.

Buy signal

Today, you can buy the euro when the price reaches the area of ​​1.2055 (green line on the chart) with the goal of rising to the level of 1.2119. At point 1.2119, I recommend exiting the market with a profit and selling the euro immediately in the opposite direction (expecting a movement of 10-15 points in the opposite direction from the level). An upward movement will occur only in case of good fundamental data for France. Important! Before buying, make sure that the MACD indicator is above zero and just starting to rise from it.

Sales signal

You can sell the euro after reaching the level of 1.2028 (red line on the chart). The target will be the level of 1.1980, where I recommend leaving the market and buying the euro immediately in the opposite direction (expecting a movement of 10-15 points in the opposite direction from the level). A further decline in the pair can be expected, as the downward correction is not over yet. Important! Before selling, make sure that the MACD indicator is below zero and just starting to decline from it.

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EUR / USD: plan for the European session on May 4. Commitment of Traders COT reports (analysis of yesterday’s deals). There may be problems with the growth of the euro. Buyers hit resistance at 1.2074

What’s on the chart:

The thin green line is the entry price at which you can buy a trading instrument.

The thick green line is the estimated price where you can place Take profit or fix profits on your own, since further growth is unlikely above this level.

The thin red line is the entry price at which the trading instrument can be sold.

The thick red line is the estimated price where you can place Take profit or fix profits on your own, since further decline is unlikely below this level.

MACD indicator. When entering the market, it is important to be guided by the overbought and oversold zones.

Important. Novice forex traders need to be very careful when making decisions about entering the market. Before the release of important fundamental reports, it is best to stay out of the market in order to avoid being caught in sharp fluctuations in the rate. If you decide to trade during the news release, 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, but trade large volumes.

And remember that in order to trade successfully, you need to have a clear trading plan, like the one I presented above. Spontaneous trading decisions based on the current market situation is an inherently losing strategy for an intraday trader.

Buy and sell levels GBPUSD on May 4th. Analysis of transactions

Analysis of transactions

The pound recovered strongly during the European and Asian sessions yesterday and is now aiming to renew last week’s highs. It is possible to expect that the pressure on the pair will return only if the important price level 1.3864 is pulled down. We will talk about the strategy below.

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Today’s guidelines for getting in and out

Today’s direction for the pair will depend on the UK Manufacturing PMI report. If the indicator coincides with the forecasts of economists and grows slightly, this will lead to a new wave of the pair’s strengthening. If the data turn out to be much worse than economists’ forecasts, it will increase the pressure on the pound, which we observed during today’s morning trading. The second half of the day does not shine with statistics: the foreign trade balance, changes in the volume of US manufacturing orders and the speech of FOMC member Mary Daly – this is what awaits us. Against this background, the volatility in the GBPUSD pair may only slightly jump, but it is unlikely that such a large yesterday’s upward movement will be repeated.

Buy signal

You can buy the pound today when it reaches the entry point around 1.3896 (green line on the chart) with the goal of rising to the level of 1.3962 (thicker green line on the chart). In the area of ​​1.3962, I recommend exiting purchases and opening sales in the opposite direction (expecting a movement of 15-20 points in the opposite direction from the level). It is best to bet on the continued growth of the pound, as all macroeconomic indicators point to a major economic recovery. Important! Before buying, make sure that the MACD indicator is above zero and just starting to rise from it.

Sales signal

Selling the pound today is possible only after the level of 1.3864 (red line on the chart) is updated, which will lead to a rapid decline in the pair. The key target of the sellers will be the level of 1.3808, where I recommend exiting the sales, as well as immediately opening purchases in the opposite direction (counting on a movement of 15-20 points in the opposite direction from the level). We can count on selling the pound only after the release of bad fundamental data on the UK and the breakout of the price level 1.3864. Important! Before selling, make sure that the MACD indicator is below zero and just starting to decline from it.

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GBP / USD: plan for the European session on May 4. Commitment of Traders COT reports (analysis of yesterday’s deals). The pound has returned almost everything it lost last Friday. Bulls need to defend 1.3863

What’s on the chart:

The thin green line is the entry price at which you can buy a trading instrument.

The thick green line is the estimated price where you can place Take profit or fix profits on your own, since further growth is unlikely above this level.

The thin red line is the entry price at which the trading instrument can be sold.

The thick red line is the estimated price where you can place Take profit or fix profits on your own, since further decline is unlikely below this level.

MACD indicator. When entering the market, it is important to be guided by the overbought and oversold zones.

Important. Novice forex traders need to be very careful when making decisions about entering the market. Before the release of important fundamental reports, it is best to stay out of the market in order to avoid being caught in sharp fluctuations in the rate. If you decide to trade during the news release, 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, but trade large volumes.

And remember that in order to trade successfully, you need to have a clear trading plan, like the one I presented above. Spontaneous trading decisions based on the current market situation is an inherently losing strategy for an intraday trader.

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