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.

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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.

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  • 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.

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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.

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