07.08.202009:06 Forex Analysis & Reviews: Analysis and trading recommendations for the EUR/USD and GBP/USD pairs on August 7

Trading recommendations for the EUR / USD pair on August 7

Analysis of transactions

The sharp rise in orders in the German industry led to the formation of a buy signal from the level of 1.1889. However, the growth that occurred was no more than 20 points, after which the quote turned downward in the price chart. Then, in the afternoon, the pair reached and tested the price level of 1.1848, but the bearish move was no more than 20 points as well.

The most important report for today is the data on industrial production in Germany and France, in which good reports will help the bulls push the European currency above the price level of 1.1851. However, in the afternoon, the July report for the US labor market could change the tides in the market, especially if data is again severely affected by the increase in coronavirus incidence in the United States. A strong report is certain to put pressure on the European currency.

• Buy positions when the quote reaches the level of 1.1851 (green line on the chart), targeting a rise to the level of 1.1907. An increase may occur, after the release of the report on industrial production in the eurozone. Take profit at a price level of 1.1907.
• Sell positions after the quote reaches the level of 1.1824 (red line on the chart), targeting a drop to the level of 1.1777. A good report on the US labor market will increase demand for the US dollar, rising its value in the market. Take profit at the level of 1.1777.

Trading recommendations for the GBP / USD pair on August 7

Analysis of transactions

The pound went above the price level of 1.3151, after the publication of the Bank of England's decision on interest rates. The upward movement was over 30 pips, but after which the bullish mood fell sharply.

The most important report for today is the July data on the US labor market, which may exert serious pressure on the British pound if data comes out better than the forecasts. Hence, take sell transactions if the pound fails to rise above the price level of 1.3145.

• Buy positions when the quote reaches a price level of 1.3145 (green line on the chart), targeting a rise to the level of 1.3195 (thicker green line on the chart). The increase will occur if data on the US labor market turns out weaker than the forecasts. Take profit when the quote reaches a price level of 1.3195.
• Sell positions after the quote hits the price level of 1.3106 (red line on the chart), as a breakout of which will lead to a rapid decline in the daily TF. However, for a larger fall in the pound, good indicators of recovery should appear in the US labor market. The target for the decline is the level 1.3058, which is also a good take-profit level for traders.