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FX.co ★ Analysis and trading recommendations for the EUR/USD and GBP/USD pairs on April 22

Analysis and trading recommendations for the EUR/USD and GBP/USD pairs on April 22

Analysis of transactions in the EUR / USD pair

A sell signal appeared in the market yesterday. However, due to low volatility, it did not result in a huge drop, and the price did not even come close to the target value. Then today, the pound climbed again, when the buy signal coincided with the MACD line going up from zero. The rise was about 18 pips. Further movement will depend on the upcoming decisions of the European Central Bank.

Analysis and trading recommendations for the EUR/USD and GBP/USD pairs on April 22

Trading recommendations for April 22

The European Central Bank will meet today to discuss further actions on monetary policy. If they announce that they will maintain a super-soft policy, then demand for the euro will continue to increase. But if they announce a change, the currency will dip and trade downwards.

At the same time, in the afternoon, the US will release reports on jobless claims and home sales. A good performance may strengthen the US dollar, which will accordingly lead to a decline in EUR / USD.

For long positions:

Enter a long position when the quote reaches 1.2054 (green line on the chart), and then take profit around the level of 1.2093. Demand for the euro will increase if the ECB maintains a super-soft monetary policy.

When buying, make sure that the MACD line is above zero, or is starting to rise from it.

For short positions:

Enter a short position when the quote reaches 1.2025 (red line on the chart), and then take profit at the level of 1.1964. The bullish trend will end if the euro drops below 1.2000.

But before selling, make sure that the MACD line is below zero or is starting to move down from it.

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Analysis and trading recommendations for the EUR/USD and GBP/USD pairs on April 22

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

Yesterday was not really a good day for the pound. It spent most of the time trading sideways, not heeding the various sell signals in the market. Apparently, opening short positions at 1.3918 is nonsensical because the MACD line was in the oversold area. But the price did decline a bit on the third test of the level.

Analysis and trading recommendations for the EUR/USD and GBP/USD pairs on April 22

Trading recommendations for April 22

Growth may continue since there are no scheduled macro statistics from the UK today. But in the afternoon, a strong decrease may manifest, especially if the reports on US jobless claims and home sales come out much better than expected. A good performance should strengthen the US dollar, which will accordingly result in a decline in EUR / USD.

For long positions:

Enter a long position when the quote reaches 1.3952 (green line on the chart), and then take profit at the level of 1.4009 (thicker green line on the chart). Pound has a chance to move up because there are no scheduled UK statistics today.

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 1.3918 (red line on the chart), and then take profit at the level of 1.3864. Price will drop lower if bearish traders successfully push the quote below 1.3918.

When selling, make sure that the MACD line is below zero or is starting to move down from it.

Analysis and trading recommendations for the EUR/USD and GBP/USD pairs on April 22

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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