Analysis of transactions in the EUR/USD pair
Three signals appeared in the market yesterday. The first one is to sell at 1.1752, but it had to be ignored because the MACD line, during that time, was in the oversold area. Then, the same signal appeared again some time after, and fortunately, by that time the MACD line was in a good zone. However, it did not result in a strong fall and the movement was only around 15 pips.
After that, a signal to buy at 1.1786 appeared, but it had to be ignored as well because the MACD line was in the overbought zone and the market could turn down at any moment.
Trading recommendations for April 6
Euro traded upwards yesterday despite strong economic indicators from the United States. This suggests that the market is always working against speculators, so relying on fundamental analysis alone is a wrong decision. That being said, today, the IMF and G7 members will hold a meeting, during which they will discuss whether to extend the Debt Service Suspension Initiative of the World Bank or not. If they do, demand for the euro should grow even more, as such an event will remove part of the debt burden from developing countries. There will also be labor market reports from both the US and EU, although they should not affect the market much.
For long positions:
Enter a long position when the quote reaches 1.1825 (green line on the chart), and then take profit around the level of 1.1860. Although a continued upward move is expected, today’s movement will still depend on the IMF’s economic report and decisions of the G7. Keep in mind that before buying, the MACD line should be above zero and is starting to rise from it.
For short positions:
Enter a short position when the quote reaches 1.1798 (red line on the chart), and then take profit at the level of 1.1756. Weak reports from the IMF will put pressure on the euro and lead to a strong decline in the market. But before selling, be 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
Two signals appeared in the market yesterday. However, both of them had to be ignored because the MACD line, during those times, was in an unprofitable zone. More specifically, when there was a signal to sell at 1.3813, the MACD line was in the oversold area, thereby limiting the downward potential of the pound. Similarly, when there was a signal to buy at 1.3849, the MACD line was in the overbought zone.
Trading recommendations for April 6
Demand for risk assets is returning. Therefore, GBP/USD should continue trading upwards today, especially amid the upcoming IMF and G7 meetings, during which authorities will discuss whether to extend the Debt Service Suspension Initiative of the World Bank. Then, in the afternoon, a report on US job vacancies and labor turnover will be released, but it should not affect the market much.
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 1.3964 (thicker green line on the chart). Price will climb higher if the pound consolidates above 1.3920. Make sure that when you buy GBP, the MACD line is above zero and is starting to rise from it.
For short positions:
Enter a short position after the quote reaches 1.3887 (red line on the chart), and then take profit at the level of 1.3836. When 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.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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