FX.co ★ EUR/USD, GBP/USD: trading tips for beginners on April 3, 2023 (US trade)

Downbeat data on manufacturing activity in the euro area was no obstacle to traders who dragged the euro sharply up in early trade on Monday. This can be attributed to the fact that market participants expect the European Central Bank to continue rasing interest rates in an effort to fight inflation. Apparently, there is a shift in semtiment in the market. So, it will come as no surprise if the asset spends the second half of the day trading upwards. However, tomorrow, the euro is expected to collapse to today's lows again. In late trade, the ISM's index of business activity in the manufacturing sector is set to be released. Judging by the market dynamics in the first half of the day, gloomy data is likely to lead to a stronger dollar. To sell the euro and the British pound, I recommend that you use scenarios No. 2, which we will discuss in more detail below.

EUR/USD

Buy signal

Scenario No. 1: Today, you can buy the euro when the price reaches 1.0884 (green line on the chart) with a view to rising to the level of 1.0923. At the point 1.0923, I recommend exiting the market and then selling the euro, counting on a correction of 30-35 pips from the entry point. Important! Before going long, make sure that the MACD indicator is above zero and is just starting to rise from it.

Scenario No. 2: Today, you can buy the euro today in case of two consecutive tests of 1.0859 at the moment when the MACD indicator is in oversold territory. This will limit the pair's downside potential and result in a bullish reversal in the market. In this case, you can expect an advance to the opposite levels of 1.0884 and 1.0923.

Sell signal

Scenario No. 1: You can sell the euro after the price reaches the level of 1.0859 (red line on the chart). The level of 1.0832 can be seen as a target, where I recommend exiting the market and buying the euro, counting on a correction of 20-25 pips in the opposite direction from this level. Important! Before going short, make sure that the MACD indicator is below zero and is just starting to decline from it.

Scenario No. 2: You can also sell the euro in case of two consecutive tests of 1.0884 at the moment when the MACD indicator is in overbought territory. This will limit the pair's upside potential and lead to a bearish reversal of the market. In this case, you can expect a decline to the opposite levels of 1.0859 and 1.0832.

GBP/USD

Buy signal

Scenario No. 1: Today, you can buy the pound sterling when the price reaches the 1.2388 mark (green line on the chart), with a view to rising to the level of 1.2416 (thicker green line on the chart). In the area of 1.2416, I recommend closing long positions and then opening short ones, counting on a correction of 30-35 pips in the opposite direction from the level. Important! Before going long, make sure that the MACD indicator is above zero and is just starting to rise from it.

Scenario No. 2: Today, you can also buy the pound sterling in case of two consecutive tests of 1.2360 at the moment when the MACD indicator is in oversold territory. This will limit the pair's downside potential and result in a bullish reversal in the market. In this case, you can expect an advance to the opposite levels of 1.2388 and 1.2416.

Sell signal

Scenario No. 1: Today, you can sell the pound sterling only after the price hits the 1.2360 mark (red line on the chart). In this case, the British currency will dip sharply. The key target of sellers will be the level of 1.2329, where I recommend closing short positions and then opening long ones, counting on a correction of 20-25 pips in the opposite direction from the level. Important! Before going short, make sure that the MACD indicator is below zero and is just starting to fall from it.

Scenario No. 2: You can also sell the pound sterling in case of two consecutive tests of 1.2388 at the moment when the MACD indicator is in overbought territory. This will limit the pair's upside potential and lead to a bearish reversal in the market. In this case, you can expect a decline to the opposite levels of 1.2360 and 1.2329.