Here's the details of the economic calendar on April 26:
The only important statistical event yesterday was the US data on the orders for durable goods for March, where an increase by 0.5% was recorded, against a decrease of -0.9% in the previous reporting period.
This indicator is prepared by the US Census Bureau and reflects the value of orders received by manufacturers of durable goods. They are understood as those whose service life exceeds 3 years, for example, cars. Since the production of such goods involves large investments, the growth of the indicator leads to the strengthening of the national currency.
In our case, we see a widespread strengthening of dollar positions in the market, but there is an assumption that this is due more to a technical factor, rather than a fundamental one.
It can be recalled that they predicted an increase in orders for durable goods by 2.5%, but the actual figure turned out to be much worse than expected (+ 0.5%).
Analysis of trading charts from April 26:
After a sharp growth on April 23, the EUR/USD pair acquired a local overbought status, which led to a technical correction with a scale of slightly more than 50 points.
The trading recommendation on April 26 considered an upward development, but only if the price was kept above the level of 1.2130, which never happened. Thus, trading positions were not opened, and the assumption of stagnation/pullback was justified in the market.
Meanwhile, the British currency approached the area of 1.3930/1.3950, which reflects the price stagnation of April 21. The natural basis associated with this area led to a reduction in the volume of long positions (buy positions), resulting in a pullback, followed by a price stagnation.
The trading recommendation on April 26 considered the negative impact of the area of 1.3930/1.3950 on the volume of long positions. Therefore, it was decided to postpone subsequent buy positions after the price was kept above the 1.3950 mark.
It was quite possible to work for a rebound from the 1.3930/1.3950 area, which is what traders were focused on.
Trading recommendations of EUR/USD and GBP/USD on April 27, 2021
We have an almost empty economic calendar today. The only thing that will be published is the S&P/Case-Shiller house price index for February in the US, but the expected change in the index may be insignificant – from 11.1% to 11.6%.
The index is prepared by Standard and Poor's and covers changes in the value of residential real estate in 20 regions of the United States. This indicator is considered an important indicator of the real estate market and its growth can lead to the strengthening of the national currency.
Looking at the trading chart of EUR/USD, it shows that the pullback stage from the local high of 1.2116 is still relevant in the market, which can lead the quote to the 1.2050 level.
The main manipulations will be performed in the form of signal coordinates. The following values are highlighted: holding below the level of 1.2050 can lead to the prolongation of the current move in the direction of 1.2000. At the same time, the breakdown of 1.2130 will resume the upward cycle towards the range of 1.2180-1.2250.
As for the trading chart of the GBP/USD, it can be seen that there is an amplitude price movement, followed by compression to the limits of 1.2874/1.3907. We can assume that the process of compression is nothing more than a process of accumulation, which will eventually lead to a new round of acceleration in the market.
The breakdown of this or that border of stagnation at 1.2874/1.3907 may lead to speculative manipulations in the direction of a breakdown.
Traders will consider the main trading operations, relative to the control levels: 1.2860 – the breakdown of this coordinate can lead to an increase in the volume of short positions in the direction of 1.3825; 1.3950 – keeping the price above which can prolong the previously set upward cycle.
