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FX.co ★ Trading recommendations for starters of EUR/USD and GBP/USD on April 20, 2021

Trading recommendations for starters of EUR/USD and GBP/USD on April 20, 2021

Trading recommendations for starters of EUR/USD and GBP/USD on April 20, 2021

Yesterday's economic calendar was almost empty, with the exception of unimportant statistics. Meanwhile, the market showed very high activity.

Here's the details of the economic calendar on April 19:

Europe released its data on the volume of mining activity, where they recorded an acceleration of the decline from -2.6% to -5.8% year-on-year.

The indicator is negative, but investors hardly reacted to the data.

As for the UK and the US, statistics were not published at all. Thus, we are inclined to believe that there was speculative interest in the market, which led to a widespread sell-off of the US dollar.

If we consider a separate trading chart of the dollar index, we will see the interest of traders in reducing the dollar's value in the currency market.

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Trading recommendations for starters of EUR/USD and GBP/USD on April 20, 2021

As for traditional currency pairs, intense price changes can be observed.

After more than 72 hours of fluctuations in the range of 1.1950/1.2000, the EUR/USD pair still managed to show outgoing activity. As a result, speculators immediately headed towards the subsequent coordinate of 1.2050 by the time of breaking the upper limit.

The trading recommendation on April 19 considered the scenario of high activity at the time of the breakdown of a particular border of 1.1950/1.2000, where the 1.2050 coordinate was indicated as a profit-taking point.

Trading recommendations for starters of EUR/USD and GBP/USD on April 20, 2021

Meanwhile, the British currency (GBP/USD) showed even greater activity than its European counterpart yesterday, where buyers did not just successfully break through the local high (1.3917) on April 6, but also moved to the psychological level of 1.4000.

Trading recommendations for starters of EUR/USD and GBP/USD on April 20, 2021

Trading recommendations of EUR/USD and GBP/USD on April 20, 2021

Today, the United Kingdom already published its labor market data, which turned out to be better than the forecast. However, the pound did not react to the statistics in any way, possibly due to the fact that its price has already risen quite strongly during the previous day.

Details on UK labor market:

The unemployment rate was expected to rise from 5.0% to 5.1%, but it declined to 4.9%, which is considered a positive signal. At the same time, employment in the country is declining by 73 thousand, but it is noteworthy that they expected a reduction of 150 thousand.

No important statistics expected to be released in Europe and the United States.

Looking at the trading chart of EUR/USD, it can be seen that market participants have already overcome the upper limit of the psychological range of 1.1950/1.2000/1.2050, and this may eventually restore the original medium-term trend.

If a decline does not occur and the price returns below the level of 1.2050, a subsequent upward reversal towards the 1.2130-1.2150 range is not excluded.

Trading recommendations for starters of EUR/USD and GBP/USD on April 20, 2021

As for the trading chart of GBP/USD, it shows that the price, almost reaching the psychological level of 1.400, led to a reduction in the volume of long positions and as a result, to a slowdown in the upward movement.

The following growth should be considered after the price has kept above the level of 1.4050, since a temporary amplitude of 1.3950/1.4000/1.4050 may occur, which will eventually lead to a change in trading forces.

Trading recommendations for starters of EUR/USD and GBP/USD on April 20, 2021

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