04.08.202009:20 Forex Analysis & Reviews: Analysis and trading recommendations for the EUR/USD and GBP/USD pairs on August 4

Trading recommendations for the EUR / USD pair on August 4

Analysis of transactions

Sell transactions opened from the level of 1.1763 brought about 55 points of profit, after which the euro rebounded, continuing the downward move with renewed vigor.

Strong data on manufacturing activity in the eurozone led to a slight increase on the euro, but the general trend remains downward. However, a similar data from the US managed to bring confidence back to traders with regards to a faster recovery in the global economy, which revived demand for the euro in the afternoon.

• Open buy transactions today when the quote reaches the price level of 1.1785 (green line on the chart), targeting a rise to the level of 1.1846. Good data on producer prices in the eurozone will help raise the euro in the market. Take profit at a value of 1.1846.
• Open sell transactions after the quote reaches the price level of 1.1748 (red line on the chart), aiming a fall to the level of 1.1700. But before selling, wait for the report on producer prices in the eurozone, the data for which will determine in which direction the euro will go in the price chart. Take profit at the level of 1.1700.

Trading recommendations for the GBP / USD pair on August 4

Analysis of transactions

Short positions were traded yesterday, after the quote reached the price level of 1.3070. Although the fall did not happen immediately due to positive data on UK manufacturing activity, the quote still reached the target price level 1.3023, which brought profit of about 45 points.

The main reason for the rise is the decreasing demand for the US dollar, which may now gradually come back, although not until mid-August.

• Enter buy deals when the quote reaches the level of 1.3095 (green line on the chart), targeting a rise to the level of 1.3142 (thicker green line on the chart). Take profit when the quote reaches the price level of 1.3142.
• Enter sell deals after the quote hits the price level of 1.3060 (red line on the chart), a breakout of which will lead to a rapid decline of the pair in the daily TF. Take profit when the quote reaches the level of 1.3005.