Black Pipper

Forex Dreamers

EURUSD market analysis for novice traders

Buy and sell levels EURUSD on April 23rd. Analysis of transactions

Analysis of transactions

Yesterday was a rather difficult day for trading, as the results of the European Central Bank’s monetary policy meeting were expected, which quickly changed the direction of the pair. In the first half of the day, the test of the price of 1.2025 should have been skipped, as the MACD indicator was in the oversold zone. The sharp rise in the euro and the test of the price of 1.2054 could be interpreted as a buy signal, although the MACD indicators were a bit confusing here too. A more correct entry was formed after the test of the level 1.2054, which took place a little later – when the MACD indicator was just starting its upward movement from the zero mark. However, a large increase in the euro still did not happen and after a while the market collapsed, as the results of the ECB meeting became known.

Today’s guidelines for getting in and out

Today we have a very important day, which is filled with a fairly large volume of fundamental statistics. In the first half of the day, it is necessary to pay attention to the data on the index of business activity in the manufacturing sector in Germany, France, Italy and the whole of the eurozone, as well as on reports on the index of business activity in the service sector of these countries. Later in the evening, the President of the European Central Bank Christine Lagarde will speak, which is unlikely to lead to a surge in volatility, since there will be nothing new in her statements. In the afternoon, attention should be paid to the index of business activity in the manufacturing and services sectors of the United States, as well as statements made by US Treasury Secretary Janet Yellen.

Buy signal

Today, you can buy the euro when the price reaches the area of ​​1.2031 (green line on the chart) with the aim of rising to the level of 1.2093. At point 1.2093, I recommend exiting the market with a profit and selling the euro immediately in the opposite direction (expecting a movement of 10-15 points in the opposite direction from the level). The upward movement will occur only if the data on the eurozone indices turn out to be much better than the economists, which is unlikely. Important! Before buying, make sure that the MACD indicator is above zero and is just starting to rise from it.

Also read  Analysis of GBP / USD. 26 April. Joe Biden's approval ratings dropped to near Donald Trump's level

Sales signal

You can sell the euro after reaching the level of 1.2012 (red line on the chart). The target will be the level of 1.1964, where I recommend leaving the market and buying the euro immediately in the opposite direction (expecting a movement of 10-15 points in the opposite direction from the level). The bullish trend is broken and sellers are left with one step before the start of the downward correction – the breakout of 1.2012. Bad data on the eurozone will help them in this. Important! Before selling, make sure that the MACD indicator is below zero and just starting to decline from it.

Recommend: EUR / USD: plan for the European session on April 23. Commitment of Traders COT reports (analysis of yesterday’s deals). Euro slides down after ECB decision on interest rates, but bulls are trying to keep the pair in the channel

What’s on the chart:

The thin green line is the entry price at which you can buy a trading instrument.

The thick green line is the estimated price where you can place Take profit or fix profits on your own, since further growth is unlikely above this level.

The thin red line is the entry price at which the trading instrument can be sold.

The thick red line is the estimated price where you can place Take profit or fix profits on your own, since further decline is unlikely below this level.

MACD indicator. When entering the market, it is important to be guided by the overbought and oversold zones.

Important. Novice forex traders need to be very careful when making decisions about entering the market. Before the release of important fundamental reports, it is best to stay out of the market in order to avoid being caught in sharp fluctuations in the rate. If you decide to trade during the news release, 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, but trade large volumes.

Also read  Plan for the European session on April 27. Commitment of Traders COT reports (analysis of yesterday's deals). The pound is at risk of collapse

And remember that in order to trade successfully, you need to have a clear trading plan, like the one I presented above. Spontaneous trading decisions based on the current market situation is an inherently losing strategy for an intraday trader.

Buy and sell levels GBPUSD on April 23rd. Analysis of transactions

Analysis of transactions

A good signal to open short positions was formed yesterday for the British pound. In my forecast, I advised selling the pound at 1.3918, which is what happened. The very first test of this level took place when the MACD indicator was near the zero mark, which formed the correct entry point to the market. During the first downward movement, the pound brought about 30 points, but the second wave collapsed the pair to the target level of 1.3864, which made it possible to take more than 50 points of profit from the market.

blank

Today’s guidelines for getting in and out

Important data on the volume of retail sales in the UK is expected today. However, the reports on the PMI in the manufacturing sector and the PMI in the services sector in the UK will lead to a more serious surge in volatility. Good performance will help the bulls stop the bear market we have been seeing all week. In the afternoon, attention should be paid to similar reports already in the United States, as well as to statements made by US Treasury Secretary Janet Yellen.

Buy signal

You can buy the pound today when it reaches the entry point in the area of ​​1.3877 (green line on the chart) with the aim of rising to the level of 1.3948 (thicker green line on the chart). In the area of ​​1.3948, I recommend exiting purchases and opening sales in the opposite direction (expecting a movement of 15-20 points in the opposite direction from the level). Good data may allow buyers of the pound to build up long positions, which will lead to an increase in the pair. Important! Before buying, make sure that the MACD indicator is above zero and is just starting to rise from it.

Sales signal

Selling the pound today is possible only after the level of 1.3845 (red line on the chart) is updated, which will lead to a rapid decline in the pair. The key target of the sellers will be the level of 1.3785, where I recommend exiting the sales, as well as immediately opening purchases in the opposite direction (counting on a movement of 15-20 points in the opposite direction from the level). Pressure on the pound could return if the data turns out to be much worse than economists’ forecasts. Important! Before selling, make sure that the MACD indicator is below zero and just starting to decline from it.

Also read  Is the EUR / USD pair able to renew the recent peaks or are there insurmountable obstacles in the face of the ECB and the Fed?

Recommend: GBP / USD: plan for the European session on April 23rd. Commitment of Traders COT reports (analysis of yesterday’s deals). The pound continues to fall, and the bears are counting on the breakdown of the next support at 1.3834

blank

What’s on the chart:

The thin green line is the entry price at which you can buy a trading instrument.

The thick green line is the estimated price where you can place Take profit or fix profits on your own, since further growth is unlikely above this level.

The thin red line is the entry price at which the trading instrument can be sold.

The thick red line is the estimated price where you can place Take profit or fix profits on your own, since further decline is unlikely below this level.

MACD indicator. When entering the market, it is important to be guided by the overbought and oversold zones.

Important. Novice forex traders need to be very careful when making decisions about entering the market. Before the release of important fundamental reports, it is best to stay out of the market in order to avoid being caught in sharp fluctuations in the rate. If you decide to trade during the news release, 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, but trade large volumes.

And remember that in order to trade successfully, you need to have a clear trading plan, like the one I presented above. Spontaneous trading decisions based on the current market situation is an initially losing strategy for an intraday trader.

Get bonus

Source: InstaForex

Leave a Reply

Your email address will not be published. Required fields are marked *