Analysis and trading recommendations for the EUR/USD and GBP/USD pairs on November 30

Analysis of transactions in the EUR / USD pair

Last Friday, the euro deviated so much from the expected movement, as many expected it to continue declining due to the massive sell-offs in the currency. However, what happened is that the bears failed to drop the price below 1.1919 for three times, as a result of which the market reversed, leading to losses on short positions. Long positions from 1.1935, meanwhile, led to a large increase towards 1.1970 today during the Asian session.

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Trading recommendations for November 30

The Eurogroup has a scheduled meeting this week, during which they will discuss the issues concerning the financing mechanism of EU countries. Any good news on this matter may support the euro in climbing up the market.

Meanwhile, for macroeconomic statistics, data on Germany's inflation will be published. Unfortunately, it may have already moved to negative levels amid the current quarantine restrictions, therefore, the data could put pressure on the European currency.

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  • Open a long position when the euro reaches a quote of 1.1984 (green line on the chart) and then take profit at the level of 1.2015. However, growth will occur only if good inflation data comes out in Germany, and if the UK and the EU finally signs a post-Brexit trade agreement.
  • Open a short position when the euro reaches a quote of 1.1963 (red line on the chart) and then take profit around the level of 1.1933. However, do this only if data on Germany's inflation come out worse than the forecasts of economists.

Analysis of transactions in the GBP / USD pair

Short positions from 1.3364 to 1.3323 brought rather good profit to the British pound last Friday. Traders managed to overcome the resistance level, which led to massive sell-offs of the currency. Aside from that, it would be better to bet on the fall of GBP / USD while there is no trade agreement yet between the UK and the EU.

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Trading recommendations for November 30

The pound will continue to move depending on the progress of Brexit negotiations. If it is announced again that the UK and the EU fail to make any concessions, the pressure on the currency could increase. To add to that, reports on the number of approved applications for a mortgage loan, as well as changes in the volume of the M4 money supply in the UK, will be published, and if the indicators show any deterioration, demand for the British pound would decrease further.

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  • Open a long position when the quote reaches the level of 1.3350 (green line on the chart) and then take profit around the level of 1.3396 (thicker green line on the chart). Good news on Brexit may strengthen the British pound.
  • Open a short position when the quote reaches the level of 1.3326 (red line on the chart) and then take profit around the level of 1.3282. Bad news on Brexit will resume the downward trend in the GBP/USD pair.
The material has been provided by InstaForex Company - www.instaforex.com