EUR/USD and GBP/USD. After having coronavirus, Boris Johnson is in no hurry to remove the lockdown. Stephen Mnuchin believes

Trading 27 avr 2020 Donner votre avis

4-hour timeframe


Average volatility over the past five days: 77p (average).

The EUR/USD pair continued its upward movement on the first trading day of the week. The pair continued to grow after overcoming the critical Kijun-sen line, thus forming a new upward trend, which is still quite weak. First, because the buy signal from Ichimoku has not yet formed. Secondly, because the pair has not yet managed to overcome the Ichimoku cloud, or even work it out. Third, the euro, like the US dollar, currently has no fundamental support. More precisely, the news comes to the disposal of traders, but most of it is ignored. This week will be a bit of a catalyst for traders' mood. A large amount of various macroeconomic information is planned, which in normal times traders could not exactly avoid. However, in these conditions, perhaps even the ECB and Fed meetings, as well as GDP publications in the European Union and the United States, may not cause any reaction from the market. No important events were planned for the first two trading days of the week, so a corrective movement is even somewhat logical now. Another question is that the correction is strong enough relative to a downward trend that isn't overly strong. Thus, there are real reasons to assume that the downward trend can be completed.

Meanwhile, the presidents of France and the United States, Emmanuel Macron and Donald Trump, concluded that the World Health Organization (WHO) needed to be reformed. It is reported that the French president is also not satisfied with the actions of WHO in the fight against coronavirus and also does not believe that the organization should be financed in the current amounts if it cannot cope with the new virus, which then spreads to the whole world.

Well, US Treasury Secretary Stephen Mnuchin said on Monday that the US economy will begin to recover this summer or early fall. According to Mnuchin, several trillion dollars have already been poured into the US economy, and these measures will have a positive impact on its recovery. Mnuchin believes that the economy will begin to open in May-June, and in July, August or September, "a real economic recovery" will begin. The minister of finance also said that now there is no talk of a financial crisis: "We have closed the economy, we will open it again. We are not dealing with a financial crisis."

4-hour timeframe


Average volatility over the past five days: 116p (high).

The GBP/USD currency pair also traded higher and also crossed the Kijun-sen critical line on April 27. Ichimoku did not generate a buy signal in the euro's case, but a Golden Cross formed for the pound sterling. However, traders could not overcome the Senkou Span B line, which is a powerful resistance. Thus, a rebound is possible when a downward trend resumes. In case of overcoming it, the upward movement can continue with renewed vigor.

There was no interesting macroeconomic news in the UK and the US on the first trading day of the week. There were only conflicting reports of a coronavirus epidemic in Great Britain. Only 413 deaths from the epidemic were reported on Sunday, the lowest number in a month. The Director of the National Health Service, Stephen Powis, said that there was a decrease in the number of hospital admissions due to COVID-2019. At the same time, Boris Johnson, who recently had coronavirus himself, said today that there are no plans to ease quarantine measures in the UK yet. Moreover, the government does not even know at what time it should begin to soften it. There are no specific deadlines yet. "We can't say now how quickly or how slowly the quarantine will begin to ease, although, of course, the government will report everything in the next few days. We also recognize the high risk of a second wave of the epidemic, the risk of losing control of the virus and allowing the epidemic to spread again at the same level. After all, such a scenario will mean not only a new wave of deaths and diseases, but also an economic disaster for the country," the prime minister said. However, Johnson mentioned that on May 7, the government will meet, analyze all the latest data on the epidemic in the country and, perhaps, make some decision on easing the quarantine measures. He urged businesses and citizens not to rush out of the quarantine.

Recommendations for EUR/USD:

For short positions:

The EUR/USD pair continues to adjust and has crossed the Kijun-sen line on the 4-hour timeframe. Thus, sell orders can again be considered but before that you have to consolidate below the critical line with the first targets of 1.0744 and 1.0733.

For long positions:

Long positions are formally relevant at this time, but we would advise you not to take risks and wait for the Ichimoku cloud to pass and only then should you resume trading on the rise with the first target of 1.0985.

Recommendations for GBP/USD:

For short positions:

The pound/dollar is also continuing an upward correction. Thus, traders are encouraged to return to pound sterling sales while aiming for a volatility level of 1.2248 if the pair returns to the area below the critical line.

For long positions:

Purchases of the GBP/USD pair are also formally relevant now, however, before overcoming the Senkou Span B line, we would advise you not to open them.

The material has been provided by InstaForex Company -

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