Analysis and trading recommendations for the EUR/USD and GBP/USD pairs on October 1

Trading recommendations for the EUR / USD pair on October 1

Analysis of transactions

Strong US statistics should've brought sharp decline in the EUR / USD pair, however, movement yesterday was a lot smaller than expected, amounting to only 20 pips down from the level of 1.1709.

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Today is the same as the upcoming reports also pose certain risks for the euro, one of which is the data on production activity in the eurozone. If the indicator comes out better than the forecasts, a new wave of growth will appear, but if a slowdown was observed on activity, the euro will depreciate even further in the market.

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  • Buy positions when the quote reaches the level of 1.1751 (green line on the chart), targeting a price of 1.1810. However, growth will only occur on the grounds of good data for the eurozone.
  • Sell positions after the euro reaches a price of 1.1709 (red line on the chart), and then take profit at the level of 1.1642.

Trading recommendations for the GBP / USD pair on October 1

Analysis of transactions

The bearish sentiment was not that strong in the pound yesterday, as a result of which the quote moved down by only 20 pips from the level of 1.2833. Then, in the afternoon, a slight bullish momentum went through the GBP / USD pair, bringing the quote a 40-pip rise from the level of 1.2882.

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Today, data for the UK PMI will be published, however, it will not greatly affect the market, as everyone's attention will be focused on Brexit updates and the spread of the coronavirus.

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  • Buy positions when the pound reaches a price of 1.2945 (green line on the chart), and then take profit at the level of 1.2999 (thicker green line on the chart).
  • Sell positions after the quote reaches the level of 1.2909 (red line on the chart), and then take profit around the level of 1.2844.
The material has been provided by InstaForex Company - www.instaforex.com