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FX.co ★ Analysis and trading recommendations for the EUR/USD and GBP/USD pairs on April 26

Analysis and trading recommendations for the EUR/USD and GBP/USD pairs on April 26

Analysis of transactions in the EUR / USD pair

Strong data on EU economic activity set the direction of the euro last Friday. It set off a buy signal at 1.2031, which occurred at the same time that the MACD line was at zero. Those traders who managed to sit out all the movements in the market were able to gain as much as 60 pips. But many already exited much earlier, around 1.2060 and 1.2075, where the upward movement stopped.

Analysis and trading recommendations for the EUR/USD and GBP/USD pairs on April 26

Trading recommendations for April 26

Pay close attention to the upcoming reports from the IFO as those will determine which direction the euro will take. A good performance will result in a sharp price increase, while a weak performance will lead to a further decline in EUR / USD. Representatives from the European Central Bank will also speak, and they will most likely point out the need for soft monetary policy. Then, in the afternoon, the US will release reports on orders for durable goods, but it is unlikely to shake the market.

For long positions:

Enter a long position when the quote reaches 1.2124 (green line on the chart), and then take profit around the level of 1.2171. The euro will turn up if Germany publishes a strong economic report.

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 1.2094 (red line on the chart), and then take profit at the level of 1.2048. The bullish trend has continued and only bad economic data from the EU can stop it.

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 26

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 number of signals appeared in the market last Friday. However, all of them did not lead to the expected result. For example, even if the signal to buy at 1.3877 appeared during the time that the MACD line was moving up from zero, the pound only rose 15 pips and then quickly returned below 1.3877. Then, its second try coincided at the time that the MACD line was in the oversold area, so the downward potential of the pound was limited.

Analysis and trading recommendations for the EUR/USD and GBP/USD pairs on April 26

Trading recommendations for April 26

Pound should rise this morning as there are no UK reports expected to be published. But by afternoon, the price may turn down due to data on orders for US durable goods. A strong figure should provide support for the dollar, which will accordingly lead to a decrease in the pound.

For long positions:

Enter a long position when the quote reaches 1.3915 (green line on the chart), and then take profit at the level of 1.3959 (thicker green line on the chart). Pound should continue trading upwards as long as the price remains above 1.3885.

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 1.3885 (red line on the chart), and then take profit at the level of 1.3826. Pound will drop lower if bearish traders push the price below 1.3885.

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 26

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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