Trading recommendations for EUR / USD on September 7
Analysis of transactions
Price dropped by 55 points in EUR / USD last Friday, largely due to very good data on the US labor market. The report indicated that unemployment in the United States dropped significantly, which suggests continued economic recovery in the country. It led to an inevitable demand increase in USD, and accordingly, to a decline in EUR / USD.
Today, since the US is on a holiday (Labor Day), strong price movements in EUR / USD, may it be in any direction, is not expected. Instead, a narrow rather trading channel could occur, where it is best to expect a decline in the euro than to hope for an increase.
- Thus, set long positions from 1.1845 (green line on the chart) to 1.1891, and take profit at the level of 1.1891.
- For shorts, open them from 1.1818 (red line on the chart) to 1.1779, then take profit at 1.1779.
Trading recommendations for GBP / USD on September 7
Analysis of transactions
Longs only brought losses to GBP / USD last Friday, but then the short positions set after covered them and gave profit. The decrease amounted to about 50 points, and it came right after the release of good data on the US labor market.
Today, no important statistics are scheduled for release, so GBP / USD may trade in a flat. Nonetheless, it is best to sell the pound along the direction of the downward trend.
- Set long positions from 1.3246 (green line on the chart) to 1.3352 (thicker green line on the chart), and take profit at the level of 1.3352.
- Sell shorts from 1.3169 (red line on the chart) and take profit at the level of 1.3124.
