empty
 
 

21.07.202111:08 Forex Analysis & Reviews: Analysis and trading recommendations for EUR/USD and GBP/USD on July 21

Analysis of transactions in the EUR / USD pair

Several market signals appeared on Tuesday, but not all of them were profitable. In fact, the first one, which was to sell, had to be ignored because it came when the MACD line was at the oversold area. Fortunately on the second one, the indicator was moving below zero, so EUR / USD was able to decline by about 30 pips.

Exchange Rates 21.07.2021 analysis

Trading recommendations for July 21

Data released on Tuesday coincided with the forecasts of analysts, which means that the European Central Bank can delay changing the monetary policy.

And surprisingly, there are no macro statistics scheduled to be released today, so the market will remain in a horizontal channel, but with a slight advantage to bearish traders.

For long positions:

Open a long position when euro reaches 1.1785 (green line on the chart), and then take profit at the level of 1.1824 (thicker green line on the chart). Demand will increase if the European Central Bank announces that it would reconsider winding down measures to support the economy. But before buying, make sure that the MACD line is above zero, or is starting to rise from it.

It is also possible to buy at 1.1768 and 1.1734, but the MACD indicator line be in the oversold area in order to bring about a market reversal to 1.1785.

For short positions:

Open a short position when euro reaches 1.1768 (red line on the chart), and then take profit at the level of 1.1734. But before selling, make sure that the MACD line is below zero, or is starting to move down from it.

It is also possible to sell at 1.1785 and 1.1824, but the MACD line should be in the overbought area in order to provoke a market reversal to 1.1768.

Exchange Rates 21.07.2021 analysis

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 market signals appeared on Tuesday, but not all of them were profitable. In fact, the first one, which was to sell, had to be ignored because it came when the MACD line was at the oversold area. Fortunately on the second one, the indicator was moving below zero, so GBP / USD was able to decline more than 40 pips.

As for the subsequent buy signal, it was successful because it appeared when the MACD line was at the oversold area.

Exchange Rates 21.07.2021 analysis

Trading recommendations for July 21

Increasing COVID-19 infections and the confusion within the government as to how to proceed are seriously hitting pound and investor sentiment. At the same time, it is now far from clear what the Bank of England plans on monetary policy.

Today, a report on public sector borrowing will be released, but it is unlikely to have a serious impact in the market. Instead, price movement will depend on the statements of UK authorities regarding coronavirus and isolation measures.

For long positions:

Open a long position when pound reaches 1.3633 (green line on the chart), and then take profit at the level of 1.3690 (thicker green line on the chart). But before buying, make sure that the MACD line is above zero, or is starting to rise from it.

It is also possible to buy at 1.3593 and 3539, but the MACD line should be in the oversold area in order to set off a market reversal to 1.3633.

For short positions:

Open a short position when pound reaches 1.3539 (red line on the chart). But before selling, make sure that the MACD line is below zero, or is starting to move down from it.

It is also possible to sell at 1.3687 and 1.3742, but the MACD line should be in the overbought area in order to trigger a market reversal to 1.3649.

Exchange Rates 21.07.2021 analysis

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.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

Jakub Novak,
Analytical expert
InstaForex Group © 2007-2021
Benefit from analysts’ recommendations right now
Top up trading account
Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.

Can't speak right now?
Ask your question in the chat.