Analysis and trading recommendations for the EUR/USD and GBP/USD pairs on July 16, 2020

Possible buy and sell levels for EUR / USD on July 16.

EUR / USD

Analysis of transactions

The trading idea yesterday was to buy positions at the level of 1.1413. As we can see in the chart (highlighted in green), this was done by traders, after which the European currency went up, also due to the publication of good inflation data in Italy, which grew along with the recovery of the economy after the coronavirus pandemic.

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Thus, the following are the recommended entry and exit positions for the EUR / USD pair today.

It is also necessary to pay attention to the upcoming meeting of the European Central Bank, during which the decisions on monetary policy will be discussed. The stance on interest rates may change there, which will affect the exchange rate of the European currency.

Hence:

  • Buy positions when the quote reaches the value of 1.1418, targeting the level of 1.1460. This may occur after the ECB's monetary policy report on US industrial production. Exit the market at the quote of 1.1460.
  • Sell positions after the quote reached the value of 1.1392, with a target of decrease to the level of 1.1351. Exit the market after it, as many new buyers will be concentrated in this range, looking for a continuation of the trend. In addition, the lower trend line passes at the level of 1.1392.

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Possible buy and sell levels for GBP / USD on July 16.

The following are the recommended entry and exit positions for the GBP / USD pair today.

The latest data on US industrial production helped the US dollar to grow against the British pound. But today, the report on the UK labor market will be important, as the intensity of its recovery will affect the future growth of the economy. A good performance in the index will inevitably strengthen the British pound.

Hence:

  • Buy positions when the quote reaches the level of 1.2575 (green line on the chart), in order to see a rise to the value of 1.2622. This may occur after the publication of the report on the labor market. Exit the market at the level of 1.2622.
  • Sell positions after the quote reached the level of 1.2550 (the red line on the chart), so that the price will decrease to a value of 1.2499. Upon reaching it, exit the market, since the bulls will concentrate on this range.

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The material has been provided by InstaForex Company - www.instaforex.com