16.10.202008:42 Forex Analysis & Reviews: Analysis and trading recommendations for the EUR/USD and GBP/USD pairs on October 16

Analysis of transactions in the EUR / USD pair

News that Germany is on the road to introducing another strict social distancing measures has led to a new wave of decline in the European currency. It supported the euro to move 40 pips down from the level of 1.1739, reaching the target level, which is 1.1700

Trading recommendations for October 16

A report on the eurozone's inflation rate will be released today. It is expected to come out rather weak, so the euro has a low chance of growing today in the market.

At the same time, in the afternoon, data on US retail sales will be published, and its figures are expected to fan growth in the US dollar.

• Open a long position when the euro reaches a quote of 1.1719 (green line on the chart), and then take profit at the level of 1.1769.
• Open a short position when the euro reaches a quote of 1.1678 (red line on the chart), and then take profit at the level of 1.1625.

Analysis of transactions in the GBP / USD pair

Hopes of getting a post-Brexit deal has faded, so the pound collapsed and moved 90 pips down from the level of 1.2905. It made short positions gain large profits from the market yesterday.

Trading recommendations for October 16

Brexit negotiations will continue today, and if the EU still does not make any concessions, the risk of Brexit not having any trade deal will become as high as possible. Such will lead to a collapse in the British pound.

But if good news comes out, that is, finally reaching an agreement with regards to a trade deal, the pound will rise against the US dollar.

• Open a long position when the pound reaches a quote of 1.2916 (green line on the chart), and then take profit around the level of 1.2974 (thicker green line on the chart).
• Open a short position when the pound reaches a quote of 1.2883 (red line on the chart), and then take profit at least at the level of 1.2824. Bad news on Brexit, as well as the continuation of the downward trend, will lead to a sharp decline in the British pound.