FX.co ★ Analysis and trading recommendations for the EUR/USD and GBP/USD pairs on April 20

Analysis of transactions in the EUR / USD pair

The euro broke above 1.1975 yesterday. However, it was risky to open longs around the price because the MACD line, during that time, was in the overbought area. But EUR / USD did hit 1.2005, which led to losses for bearish traders.

Trading recommendations for April 20

Although the figure decreased, the data on ECB's balance of payments did not affect the European currency. Apparently, the market is more responsive to expectations than reports of no particular interest. There are no important data and statements scheduled for release today.

For long positions:

Enter a long position when the quote reaches 1.2078 (green line on the chart), and then take profit around the level of 1.2130. The euro has a high chance of experiencing strong growth today because the latest COT reports indicate that there are more and more bullish traders in the market.

For short positions:

Enter a short position when the quote reaches 1.2041 (red line on the chart), and then take profit at the level of 1.1983. But note that going against the bullish trend is very risky, since the euro already broke through the major resistance level yesterday.

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

A buy signal appeared in GBP / USD yesterday. However, it had to be ignored because the MACD line, during that time, was in the overbought zone. Although some time later, when the pound hit 1.3850 for the second time, the MACD line was going up from zero, so the price was able to increase by 50 pips, reaching the target level of 1.3904.

Trading recommendations for April 20

Pay attention to the upcoming reports from the UK as they will determine in which direction the pound will go today. To be more specific, GBP / USD will rise to new local highs if the data on jobless claims show a decrease in figure, and the unemployment rate in the UK falls from the current highs.

For long positions:

Enter a long position when the quote reaches 1.4016 (green line on the chart), and then take profit at the level of 1.4080 (thicker green line on the chart). Pound will trade higher if there are strong reports from the UK.

Make sure that when you buy GBP, the MACD line is above zero or is starting to rise from it.

For short positions:

Enter a short position after the quote reaches 1.3969 (red line on the chart), and then take profit at the level of 1.3885. Pressure on the pound will return if reports from the UK are worse than the forecasts.

When 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 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.