Analysis and trading recommendations for the EUR/USD and GBP/USD pairs on October 7

Analysis of transactions in the EUR / USD pair

Trump's reluctance to adopt a new aid package led to a sharp drop in risky assets, including the European currency. However, throughout the day, a sufficient number of signals, both buy and sell, appeared on the euro, the first of which, sales, turned into losses. It was only at the end of the day that the quote dropped to the target level of 1.1724, which compensated all the losses realized the entire day.

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Trading recommendations for October 7

Christine Lagarde will conduct an important speech today, during which she may reveal the details of the ECB's plan in stimulating growth to the European economy. Hints of an expansion in the PEPP emergency buyback program may lead to another fall in the euro, so it is best to trade short positions in the market today. Important macroeconomic statistics are not scheduled for release today.

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  • Buy a position only when the euro reaches a quote of 1.1752 (green line on the chart), and then take profit at the level of 1.1800. However, a bullish move will only occur if the report on Germany's industrial production comes out good today.
  • Sell after the euro reaches a quote of 1.1727 (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 1.1684.

Analysis of transactions in the GBP / USD pair

Pressure continues to appear on the pound, so as a result, two good sell signals arose, which brought about 40 pips of profit to the GBP/USD pair.

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Trading recommendations for October 7

Since important macroeconomic statistics are not scheduled for release today, the entire focus will be shifted to the protocols of the Federal Reserve System, which may further increase the pressure on the pound.

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  • Buy a position when the pound reaches a quote of 1.2904 (green line on the chart), and then take profit around the level of 1.2955 (thicker green line on the chart).
  • Sell a position after the pound reaches a quote of 1.2879 (red line on the chart), and then take profit at least at the level of 1.2818.
The material has been provided by InstaForex Company - www.instaforex.com