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07.04.202108:20 Forex Analysis & Reviews: Analysis and trading recommendations for the EUR/USD and GBP/USD pairs on April 7

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Analysis of transactions in the EUR / USD pair

A buy signal appeared in the market yesterday. Fortunately, it was during the time that the MACD line moved above zero, so as a result, the euro jumped by around 35 pips. Obviously, demand for risk assets is returning, especially amid positive outlooks for the EU economy.

Exchange Rates 07.04.2021 analysis

Trading recommendations for April 7

EUR / USD should trade upwards today if economic reports from the EU turn out to be much better than projected. At the same time, the International Monetary Fund (IMF) and G20 countries will meet, during which they will discuss whether to extend the Debt Service Suspension Initiative of the World Bank. Then, in the afternoon, the US Federal Reserve will publish the minutes of its last meeting, but it should not affect the markets very much.

For long positions:

Enter a long position when the quote reaches 1.1879 (green line on the chart), and then take profit around the level of 1.1923. Although a continued upward move is expected, today's movement will still depend on the IMF's economic report and decisions of the G20 countries.

Keep in mind that before buying, the MACD line should be above zero and is starting to rise from it.

For short positions:

Enter a short position when the quote reaches 1.1862 (red line on the chart), and then take profit at the level of 1.1827. Weak reports from the EU will put more pressure on the euro and lead to a stronger decline in the market.

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

Exchange Rates 07.04.2021 analysis

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 sell signal appeared in the market yesterday. Fortunately, it was during the time that the MACD line moved below zero, so as a result, the pound declined by around 50 pips. But after that, the price climbed again by 20 pips, going back to 1.3887.

Exchange Rates 07.04.2021 analysis

Trading recommendations for April 7

GBP / USD will trade upwards today if economic reports from the UK turn out to be much better than projected. At the same time, the International Monetary Fund (IMF) and G20 countries will meet, during which they will discuss whether to extend the Debt Service Suspension Initiative of the World Bank. Then, in the afternoon, the US Federal Reserve will publish the minutes of its last meeting, but it should not affect the markets very much.

For long positions:

Enter a long position when the quote reaches 1.3841 (green line on the chart), and then take profit at the level of 1.3887 (thicker green line on the chart). Price will climb higher if there are strong economic reports from the UK.

Make sure that when you buy GBP, the MACD line is above zero and is starting to rise from it.

For short positions:

Enter a short position after the quote reaches 1.3815 (red line on the chart), and then take profit at the level of 1.3784. Pressure on the pound will return if the UK PMI is weak.

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

Exchange Rates 07.04.2021 analysis

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.

Przedstawiono Jakub Novak,
przez eksperta analitycznego
z grupy firm InsaForex © 2007-2024
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