06.10.202008:25 Forex Analysis & Reviews: Analysis and trading recommendations for the EUR/USD and GBP/USD pairs on October 6

Analysis of transactions in the EUR / USD pair

A rather strong report over the eurozone services sector was published yesterday, followed by a sharp jump in retail sales. Such became a good impetus for growth in the European currency, thus, long positions from 1.1742 brought about 40 pips of profit in the market.

Trading recommendations for October 5

ECB President Christine Lagarde will hold an important speech over inflation and the PPEP emergency buyback program today, with which hints of its expansion may lead to a short-term fall in the European currency. Meanwhile, other important macroeconomic statistics are not scheduled to be published.

• Buy a position only when the euro reaches a quote of 1.1802 (green line on the chart), and then take profit at the level of 1.1844. However, a bullish move will only occur if good news comes out from the meeting of Eurozone finance ministers.
• Sell after the euro reaches a quote of 1.1778 (red line on the chart), as such will increase pressure on the EUR / USD pair, thereby forcing speculative players to leave the market. Afterwards, take profit at the level of 1.1724.

Analysis of transactions in the GBP / USD pair

Good data on the UK services sector kept the British pound from declining, so as a result, short positions from the level of 1.2909 became rather unprofitable yesterday. Meanwhile, long positions from 1.2955 were also unlucky, as there was no large movement from the range.

Trading recommendations for October 5

Today, the latest report on UK construction PMI is scheduled to be published, but even if it is not of particular interest, it may have a short-term impact on the pound if the data is seriously at variance with the forecasts of economists.

• Buy a position when the pound reaches a quote of 1.3004 (green line on the chart), and then take profit around the level of 1.3080 (thicker green line on the chart).
• Sell a position after the pound reaches a quote below 1.2970 (red line on the chart), and then take profit at least at the level of 1.2904.