Analysis and trading recommendations for the EUR/USD and GBP/USD pairs on July 24, 2020

Trading recommendations for the EUR/USD pair on July 24

EUR/USD

Analysis of transactions

The euro, albeit not immediately, rose after the quote passed the level of 1.1588, reaching the target value 1.1624. The reason for it was the weak data on the US labor market, which weakened the position of the US dollar in the trading chart.

Today, a number of important macroeconomic reports in the eurozone are to be published, in which if there comes an increase in activity in both the manufacturing and services sector, price will rise in the trading chart. But if data turns out to be weaker than forecasts, a drop is likely to occur at the end of the week.

Thus,

  • Buy positions when the quote reaches the level of 1.1619 (green line on the chart), targeting the level of 1.1655. It may occur after the data on economic activity in Germany is published. Exit the market when the price reaches a value of 1.1655.
  • Sell positions when the quote reaches the level of 1.1586 (red line on the chart), targeting the level of 1.1542. To drop the price even more, weak indicators of activity in the eurozone are needed, because such will negatively affect the prospects for economic recovery. Hence, it is best to sell the EUR/USD pair after the release of reports, and not before them. Exit the market when the quote is at a value of 1.1542.

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Trading recommendations for the GBP/USD pair on July 24

GBP/USD

Analysis of transactions

The quote tested the level of 1.2722, which led to a drop in price in the trading chart.

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A number of important reports for the United Kingdom are to be published today, one of which is the latest data on retail sales. It will be followed by reports on activity in the services sector, which makes up the bulk of the UK economy. These indicators are very important so the direction of the pound depends on it.

  • Buy positions when the quote reaches the level of 1.2748 (green line on the chart), targeting the level of 1.2776 (thicker green line on the chart). If the data on PMI turns out to be good, the rate of the GBP/USD pair will rise in the trading chart. Take profit when the quote reaches the value 1.2776.
  • Sell positions when the quote reaches today's low, which is the level of 1.2722 (red line on the chart). This is because usually, a breakout from the lows lead to large sell-offs in the currency pair, since profit is taken on long positions that have accumulated along the trend. A test of the level will lead to a drop in price to the value of 1.2686, where it is best to exit the market.

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