Trading recommendations for EUR / USD on August 21.
Analysis of transactions
Both buy and sell transactions in the euro only brought losses yesterday, mainly due to the sideways movement of the EUR / USD pair all day. The latest data on the US labor market even failed to raise US dollar purchases in the market.
Today, data on activity in the manufacturing and service sectors of the eurozone will be published, and if the reports turn out better than the forecasts of economists, price will jump and increase in the chart.
- Thus, buy positions when the quote reaches the price level of 1.1888 (green line on the chart), aiming a rise towards the level of 1.1928. However, an increase will only occur if activity in the eurozone grow and exceed the forecasts, with which particular attention should be paid to the service sector, which is most affected by the pandemic. Nonetheless, take profit at the level of 1.1928.
- Meanwhile, sell positions when the quote reaches a price level of 1.1861 (red line on the chart), aiming for a price drop towards the level of 1.1813. However, only very weak indicators of activity can lead to the realization of such a scenario. Nonetheless, take profit at the level of 1.1813.
Trading recommendations for GBP / USD on August 21.
Analysis of transactions
Sell transactions in the pound turned out to be unprofitable, but the buy transactions from the level of 1.3112 brought about 40 points of profit, since the price reached the forecasted target 1.3161.
To continue the growth of the pound, good data on retail trade in the UK is needed, as well as strong data on activity in the service sector, which makes up almost 70% of the economy. If the data comes out better than the forecasts of economists, the bulls will be able to break the highs reached by the pair this week.
- Buy positions when the quote reaches the level of 1.3268 (green line on the chart), targeting a rise to the level of 1.3315 (thicker green line on the chart). However, growth will only occur if composite PMI indicates good growth in activity. Nonetheless, take profit at the level of 1.3315.
- Sell positions after the quote hits the level of 1.3218 (red line on the chart), as a breakout of which will result in a larger price drop in the pound. Take profit at the level of 1.3133.
