23.04.202107:57 Forex Analysis & Reviews: Analysis and trading recommendations for the EUR/USD and GBP/USD pairs on April 23

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, during that time, was in the oversold area. Then, in the afternoon, a signal to buy at 1.2054 appeared, but it did not result in a huge jump as the price returned to its previous level immediately after. In fact, the market collapsed as soon as the ECB announced its decision to maintain the current soft monetary policy.

Trading recommendations for April 23

Pay close attention to the upcoming reports from Germany, France, Italy and the whole Euro area 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. Then, in the afternoon, the US will release reports on business activity in the manufacturing and services sectors, followed by statements from US Treasury Secretary Janet Yellen. And later in the evening, ECB President Christine Lagarde will speak, but it is unlikely to lead to a surge in volatility, since there should be nothing new in her statements.

For long positions:

Enter a long position when the quote reaches 1.2031 (green line on the chart), and then take profit around the level of 1.2093. The euro will turn up if the EU publishes strong economic reports.

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 1.2012 (red line on the chart), and then take profit at the level of 1.1964. The bullish trend has ended, so the euro will most likely drop below 1.2012 soon.

But 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 signal to sell at 1.3918 appeared in the market yesterday. Fortunately, it came when the MACD line was slightly below zero, so the pound was able to decline by 30 pips. The second test of the level ended up with more than 50 pips decrease.

Trading recommendations for April 23

Pay attention to the upcoming reports on UK PMI, as a good performance will help the pound escape the bear market. Then, in the afternoon, the US will publish similar reports, followed by statements from US Treasury Secretary Janet Yellen.

For long positions:

Enter a long position when the quote reaches 1.3877 (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 UK releases stronger-than-expected PMI reports.

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 1.3845 (red line on the chart), and then take profit at the level of 1.3785. Price will drop lower if the UK publishes weak PMI reports.

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.