FX.co ★ Analysis and trading recommendations for the EUR/USD and GBP/USD pairs on April 29

Analysis of transactions in the EUR / USD pair

A number of signals appeared in the market yesterday. However, only one of them yielded a result. Both sell signals at 1.2065 failed because on the first try, the MACD line was in the oversold area, while on the second one, the market stood still even though the indicator is just slightly below zero. Fortunately, bearish traders managed to get out without any losses.

Trading recommendations for April 29

The Federal Reserve maintained its super-soft monetary policy, as expected. Accordingly, demand for risk assets surged, while demand for the dollar dipped. But today, the euro may turn down because of upcoming reports on the Euro area. Analysts said unemployment rate and CPI in Germany might have become worse than previous periods, which will limit the upward potential of the euro. Data on consumer confidence is also unlikely to seriously affect the market. Also, the US will release data on Q1 GDP and jobless claims in the afternoon, which, if exceed expectations, will lead to a sharp drop in EUR / USD.

For long positions:

Enter a long position when the quote reaches 1.2145 (green line on the chart), and then take profit around the level of 1.2209. The euro will turn up if there are good reports on the Euro area. It may also rally if the ECB gives positive statements.

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 1.2107 (red line on the chart), and then take profit at the level of 1.2056.

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 because at every moment they manifested, the MACD line was either at the overbought area or at the oversold area. For example, when a buy signal appeared at 1.3890, the MACD line was way above zero, limiting the upward potential of the pound.

Trading recommendations for April 29

The Federal Reserve maintained its super-soft monetary policy, as expected. Accordingly, demand for risk assets surged, while demand for the dollar dipped. And today, the rally is expected to continue, mainly because there are no macro statistics expected from the UK. Most likely, bullish traders will be able to push the pound up, but by afternoon the growth may pause because of reports from the US. However, even if those data came out better than expected, there is little chance that the market will be shaken.

For long positions:

Enter a long position when the quote reaches 1.3965 (green line on the chart), and then take profit at the level of 1.4025 (thicker green line on the chart). Pound has a high chance of trading upwards today because bullish traders managed to push the quote above the major resistance level. But 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 1.3925 (red line on the chart), and then take profit at the level of 1.3864. 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.