Trading recommendations for EUR / USD on August 27
Analysis of transactions
A bearish mood arose in the euro after reports on US durable goods revealed a sharp increase in orders. It led to a 30-point decrease in price on the EUR / USD pair yesterday, from a price level of 1.1804.
Today, trading will be affected by the upcoming speech of Fed chairman Jerome Powell, who will talk about the Fed monetary policy. If his statements turn out to be soft, the US dollar will weaken, and the euro will resume its rise in the market.
- Set long positions from 1.1848 (green line on the chart) to 1.1887, as upcoming news on the US labor market may set off a price increase in the EUR / USD pair. Take profit at a price level of 1.1887.
- Meanwhile, short positions may be opened at 1.1823 (red line on the chart) to 1.1776, but only do so before Fed chairman Powell gives his speech. Take profit at a price level of 1.1776.
Trading recommendations for GBP / USD on August 27
Analysis of transactions
Long positions set from the level of 1.3161 bought more than 50 points of profit yesterday, mainly because buy transactions in the pound subsequently led to a rapid growth of the currency in the market.
Today, the pound may continue to rise, but this will happen only after the speech of Fed chairman Jerome Powell. As mentioned earlier, if the monetary policy stays soft, the US dollar will weaken, and risk assets such as the pound will rise in the market.
- Open long positions from 1.3225 (green line on the chart) to 1.3270 (thicker green line on the chart), and take profit at the level of 1.3270.
- Set short positions at 1.3180 (red line on the chart), as a breakout from which will lead to a larger decline in the pair to the support level of 1.3122. However, such will only happen if Fed chairman Powell announces new stimulus measures for the US economy. Nonetheless, the target profit is a price level of 1.3120.
