FX.co ★ Analysis and trading recommendations for the EUR/USD and GBP/USD pairs on April 27

Analysis of transactions in the EUR / USD pair

Weak data from the IFO limited the upward movement yesterday. It also formed three sell signals in the market. However, only one was successful because the first two times was when the MACD line was at the oversold area. It was only during the US session that the MACD line went below zero, allowing the price to decrease by about 30 pips.

Trading recommendations for April 27

There are two scenarios that could happen in the market today. First is a movement sideways because of the lack of EU statistics, while the second is a decline ahead of the Fed policy meeting. Either way, it means that we should change into short positions so that we can avoid losing profit.

Also, the US will release reports on consumer confidence and manufacturing activity later, which, if shows strong figures, may lead to a rise in the dollar and accordingly, a further decline in the euro.

For long positions:

Enter a long position when the quote reaches 1.2090 (green line on the chart), and then take profit around the level of 1.2136. The euro will turn up if Treasury yields in the US decline.

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 1.2061 (red line on the chart), and then take profit at the level of 1.2000. The bullish trend is under threat and most likely, the market will take a wait-and-see position before tomorrow's Fed decision, which could play into the hands of bearish traders.

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

Two buy signals appeared in the market yesterday. However, both of them did not yield the expected results even though the MACD line was also moving up from zero.

Then, in the afternoon, a sell signal appeared, but it was impossible to open short positions as the MACD line was in the oversold area.

Trading recommendations for April 27

Pay attention to the upcoming report on UK retail sales because a good performance may lead to a strong rise in the pound. It is also important for bullish traders to push the price higher than 1.3900 as doing so will return the upward momentum in the market.

But in the afternoon, price may begin to turn down, when the US publishes its reports on consumer confidence and manufacturing activity. Good figures will inevitably strengthen the dollar.

For long positions:

Enter a long position when the quote reaches 1.3898 (green line on the chart), and then take profit at the level of 1.3948 (thicker green line on the chart). Pound should continue trading upwards as long as the price remains above 1.3900.

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 1.3875 (red line on the chart), and then take profit at the level of 1.3826. Pound will trade downwards if the price does not go above 1.3900.

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.