14.08.202008:44 Forex Analysis & Reviews: Analysis and trading recommendations for the EUR/USD and GBP/USD pairs on August 14

Trading recommendations for the EUR / USD pair on August 14

Analysis of transactions

The signal to buy the European currency from the level of 1.1819 worked positively yesterday, allowing about 30 points of profit to be taken from the market. The increase came after the publication of good data on eurozone inflation, after which the closing of long positions broke the bullish trend and turned down the quote in the price chart.

Today, euro may start to decline amid strong contraction in the eurozone economy for the second quarter. Good data on US retail sales in the afternoon will also contribute to the rise of the dollar and decrease of the EUR / USD pair in the market.

• Buy positions when the quote reaches a price level of 1.1835 (green line on the chart), targeting a rise to the level of 1.1878. The increase may occur after the release of the Eurozone GDP report, provided that the data turns out better than the forecasts. Take profit at the level of 1.1878.
• Sell positions after the quote reaches a price level of 1.1802 (red line on the chart), targeting a drop to the level of 1.1757. However, before selling, make sure that the data on the European economy is worse than forecasted, as only such will contribute to the decline of the EUR / USD pair. Take profit at a price level of 1.1757.

Trading recommendations for the GBP / USD pair on August 14

Analysis of transactions

The signal to buy the pound from the level of 1.3074 worked positively, giving a profit of more than 30 points from the market.

Data on the volume of retail trade in the US will be published today, which could restore demand for the US dollar provided that the figure comes out better than the forecasts. A good performance will increase the pressure on the British pound, and lead to a decline in the GBP / USD pair in the market.

• Buy positions when the quote reaches a price level of 1.3085 (green line on the chart), targeting a rise to the level of 1.3127 (thicker green line on the chart). However, growth is not really expected today, so it is better to take profit at the level of 1.3127.
• Sell positions after the quote hits the price level of 1.3049 (red line on the chart), as a breakout of which will lead to a rapid decline in the pair today. Support will be obtained in the form of good data on the US economy, the report for which will come out this afternoon. The target of the decline is the price level 1.3005, which is also a good target profit in the market.