FX.co ★ Analysis and trading tips for EUR/USD on April 20 (US session)

Euro continued to rise even though producer prices in Germany dropped sharply amid lower energy carriers and reduced company costs. The speech of ECB President Christine Lagarde has been postponed to the afternoon, so it will coincide with the release of data on US jobless claims and volume of home sales in the secondary market. The former may be of little interest, but the latter could return demand for dollar, provided that the figure exceeds expectations. The Philadelphia Fed manufacturing index and speeches of FOMC members Christopher Waller and Michelle Bowman may also help dollar, as recently, US politicians continue to insist on raising rates. There were no market signals this morning due to low volatility and volume.

For long positions:

Buy euro when the price hits 1.0980 (green line on the chart) and then take-profit when the quote reaches the level of 1.1020. Growth will occur if Lagarde says hawkish comments about monetary policy. However, before buying, make sure that the MACD line is above zero and is starting to rise from it.

Euro can also be bought if the level of 1.0950 is tested twice, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0980 and 1.1020.

For short positions:

Sell euro when the price reaches 1.0950 (red line on the chart) and take-profit at the level of 1.0906. Pressure will return if the US reports good statistics. However, before selling, make sure that the MACD line is below zero and is starting to drop down from it.

Euro can also be sold if the level of 1.098 is tested twice, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0950 and 1.0906.

What's on the chart:

Thin green line - entry price at which you can buy EUR/USD

Thick green line - estimated price where you can set Take-Profit (TP) or manually fix profits, as further growth above this level is unlikely.

Thin red line - entry price at which you can sell EUR/USD

Thick red line - estimated price where you can set Take-Profit (TP) or manually fix profits, as further decline below this level is unlikely.

MACD line- it is important to be guided by overbought and oversold areas when entering the market

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 decision based on the current market situation is an inherently losing strategy for an intraday trader.