30.04.202113:19 Forex Analysis & Reviews: Trading recommendations for starters of EUR/USD and GBP/USD on April 30, 2021

Here's the details of the economic calendar on April 29:

The main news flow came from the United States, where the Commerce Department released its preliminary GDP data for the first quarter, recording economic growth of 6.4%.

The Commerce Department said in a report that the GDP growth in the first quarter of 2021 reflects the ongoing economic recovery, business start-ups and the ongoing government response to the pandemic.

It can be recalled that America's economic growth rate was 4.3% during the Q4 of 2020.

The historical indicators are still the data for the Q2 of 2020, where GDP declined by 31.4% and indicators for the Q3 of 2020, where GDP growth set a record of + 33.4%.

It can be presumed that all the records are related to the pandemic and its consequences.

The market did not react to the data on the US GDP and the US dollar strengthened by only 15-20 points.

Simultaneously with the GDP data, the weekly data on the volume of applications for unemployment benefits in the US was also released, which showed growth, instead of stagnation.

The volume of initial applications for benefits fell from 566 thousand to 553 thousand, but the previous data was revised downward 547 ---> 566 thousand, and the actual value was expected at the level of 549 thousand.

The volume of repeated applications for benefits was expected to decline from 3,674 thousand to 3,614 thousand, but as a result, the previous data was revised 3 674 ---> 3 651 thousand, and the actual figures reflected an increase of 3 660 thousand.

It is worth noting that applications reflect the number of citizens who are not currently working and receiving unemployment benefits. This indicator reflects the state of the labor market, where the growth of the indicator negatively affects the level of consumption and economic growth.

Analysis of trading charts from April 29:

The EUR/USD pair showed low activity yesterday, even though the long positions (buy positions) were overheated, and the news background, namely the US GDP data encouraged the dollar to increase.

If we combine all the fluctuations over the past day, we get a price pullback from the local high of 1.2149, which led to a movement towards the level of 1.2100.

The trading recommendation on April 29 considered a possible pullback, but at the same time, it was noted that it will not change the upward cycle in the market.

Following the Euro currency, the pound slowed down its growth, but we saw a process of accumulation along the level of 1.3950 in the end, instead of a pullback. In fact, the market is already pointing to an early round of speculative operations.

Trading recommendations of EUR/USD and GBP/USD on April 30, 2021

Today, Europe will release its preliminary GDP data for the first quarter, where a slowdown in the decline is expected from -4.9% to -2.0%.

There is a positive signal in terms of fundamental analysis, but there is still a strong gap with the US data.

Simultaneously with the GDP indicator, the European unemployment rate will be released as well, which is forecasted to remain at 8.3%.

Looking at the trading chart of EUR/USD, it shows that there is a minor pullback, where the following are used as signal values:

If the price holds below the 1.2100 coordinate, a stronger pullback from the local high, presumably towards the level of 1.2050, may occur.

If the price holds above the 1.2150 coordinate, this will lead to an increase in buy positions, and eventually, to further growth towards 1.2180-1.2250.

As for the trading chart of the GBP/USD, the accumulation process, which was mentioned above, is clearly seen. The borders of the amplitude fluctuations are 1.3931/1.3975. In this case, the most optimal trading tactic is considered to be the method of breaking through a particular accumulation limit (1.3931/1.3975) working on the outgoing impulse.