Analysis of transactions in the EUR/USD pair
Three sell signals appeared in the market last Friday. However, the first two had to be ignored because the MACD line, during that time, was in the oversold zone. It was only when the euro hit 1.1896 for the third time that the price went down by 20 pips.
Trading recommendations for April 12
Terrible data from France and Germany limited the euro’s upward potential last Friday. Then, the report on US PPI led to a temporary strengthening of the US dollar. Taking all this into account, many expect EUR/USD to rebound this week. However, for that to happen, there should be strong economic reports from the Euro area. But the recent situation with COVID-19 has deteriorated, which means that retail trade data for the eurozone is unlikely to be strong and meet the expected forecasts of economists. Therefore, there is a very low chance that the euro will climb today. A report on the US budget will also be published this afternoon.
For long positions:
Enter a long position when the quote reaches 1.1905 (green line on the chart), and then take profit around the level of 1.1935. Strong data from the Euro area will result in a strong upward movement. But before buying, make sure that the MACD line is above zero, or is starting to move up from it.
For short positions:
Enter a short position when the quote reaches 1.1882 (red line on the chart), and then take profit at the level of 1.1851. Weak data from the Euro area will lead in another downward movement in EUR/USD. But before selling, make sure that the MACD line is below zero or 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
Hitting 1.3721 led to a large sell-off in GBP/USD. It occurred when the MACD line was in the area of local lows, which means that the pound is oversold and should not have declined strongly. But alas, the pound declined by more than 50 pips yesterday and reached 1.3676. Taking this into account, it is a good idea to open long positions today and wait for at least a 40-pip upward movement.
Trading recommendations for April 12
GBP/USD remains under pressure due to problems with Brexit. In fact, riots have already started in Ireland, which inevitably affects demand and the position of the British currency. And considering that there are no important reports scheduled to be released today, the market will pay attention to the upcoming statements from the Bank of England.
For long positions:
Enter a long position when the quote reaches 1.3704 (green line on the chart), and then take profit at the level of 1.3744 (thicker green line on the chart). Pound will trade higher if the Bank of England delivers positive statements, and if the price goes above 1.3794. 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 1.3678 (red line on the chart), and then take profit at the level of 1.3635. Pressure on the pound persists because of the ongoing problems with Brexit. 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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