FX.co ★ Analysis and trading recommendations for the EUR/USD and GBP/USD pairs on April 28

Analysis of transactions in the EUR / USD pair

A sell signal appeared in the market yesterday. However, it had to be ignored because the MACD line was in the oversold zone the whole day, limiting the downward potential of the euro.

Analysis of transactions in the EUR / USD pair

A sell signal appeared in the market yesterday. However, it had to be ignored because the MACD line was in the oversold zone the whole day, limiting the downward potential of the euro.

Trading recommendations for April 28

Pay attention to the upcoming macroeconomic reports today, which are the leading index on consumer climate in Germany, balance of foreign trade in goods in the US and changes in the volume of stocks in US warehouses. The European Central Bank will also release a statement, but the most important is the policy decisions of the Federal Reserve. If the US central bank does not announce any changes on its monetary policy, then demand for the dollar will decrease, which will accordingly result in a rise in EUR / USD.

For long positions:

Enter a long position when the quote reaches 1.2093 (green line on the chart), and then take profit around the level of 1.2164. The euro will turn up if the Fed 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 1.2065 (red line on the chart), and then take profit at the level of 1.2000. The bullish trend will end if the Fed announces future changes on its monetary policy.

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 number of signals appeared in the market yesterday. However, all of them did not yield the expected results. For example, although the signal to buy at 1.3898 appeared when the MACD line was rising from zero, the pound did not move up. Similarly, even though the signal to sell at 1.3875 appeared when the MACD line was going down from zero, an accentuated downward movement did not happen.

Trading recommendations for April 28

Pay attention to the upcoming decisions of the Federal Reserve as it would seriously affect market sentiment. If the central bank announces an earlier withdrawal of the bond purchase program, then demand for the US dollar will rise, which will accordingly result in a decline in GBP / USD. But if the Fed does not announce any changes, the pressure on the dollar will return.

For long positions:

Enter a long position when the quote reaches 1.3890 (green line on the chart), and then take profit at the level of 1.3948 (thicker green line on the chart). Pound will trade upwards if the Federal Reserve does not announce any change in its monetary policy.

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 when the quote reaches 1.3868 (red line on the chart), and then take profit at the level of 1.3826. Going below this week's lows will result in the pound dropping to 1.3826.

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.