Analysis of transactions in the EUR/USD pair
A buy signal appeared in the market yesterday. However, it was only when the euro hit 1.1879 for the fourth time that the quote climbed up by 30 pips. Unfortunately, EUR/USD still did not reach the target level, as the bullish momentum gradually slowed.
Trading recommendations for April 8
Fed minutes, although did not contain anything new, reminded traders that the current monetary policy will not change. As a result, demand for risk assets decreased slightly. Then today, data on EU PPI and ECB minutes will be released, but they are unlikely to lead in a surge in market volatility. In the afternoon though, statements from the Federal Reserve may support the dollar, which will accordingly result in a further decline in EUR/USD.
For long positions:
Enter a long position when the quote reaches 1.1879 (green line on the chart), and then take profit around the level of 1.1923. Price will jump higher if economic reports on the Euro area come out stronger than anticipated. ECB minutes should also support the euro. 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 1.1859 (red line on the chart), and then take profit at the level of 1.1827. Weak reports from the EU will put more pressure on the euro and lead to a stronger 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
A sell signal appeared in the market yesterday. Fortunately, it was during the time that the MACD line moved below zero, so as a result, the pound declined by around 30 pips. But after that, the price climbed again by 20 pips, going back to 1.3784.
Trading recommendations for April 8
Upcoming reports from the UK construction sector are unlikely to have a serious impact on the market. But the statements from the Federal Reserve later in the afternoon will certainly strengthen the position of the US dollar, accordingly resulting in a decline in GBP/USD.
For long positions:
Enter a long position when the quote reaches 1.3774 (green line on the chart), and then take profit at the level of 1.3835 (thicker green line on the chart). Price will climb higher if there are strong economic reports from the UK. 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 1.3742 (red line on the chart), and then take profit at the level of 1.3676. Pound will decline if the data on UK PMI comes out weaker than expected. 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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