Trading recommendations for EUR / USD on September 3
Analysis of transactions
Another weak data in the eurozone, retail sales report in Germany in particular, led to a price decrease in EUR / USD, which brought the quote back to 1.1874 and gave profit of over 45 points to short positions.
Today, data on activity in the EU service sectors is scheduled to be published, and if the indicators show a slowdown in growth, or worse, a reduction in activity, demand and price of EUR / USD will decline in the morning.
In the afternoon, during the US session, a report for the US labor market will also come out, the data for which will affect EUR / USD rates as well.
- Set long positions from 1.1834 (green line on the chart) to 1.1903, and take profit at the level of 1.1903. Good data on activity in Germany will support the euro in rising in the market.
- Meanwhile, traders need to be very careful with shorts in the euro, as the downward movement in the last few days have been quite strong, and an upward correction is needed. Thus, sell shorts only from 1.1789 (red line on the chart) to 1.1733, as a large drop will only occur if retail sales in the eurozone come out weak in the reports. Nonetheless, take profit at price level 1.1733.
Trading recommendations for GBP / USD on September 3
Analysis of transactions
Short positions from 1.3357 to 1.3300 gave about 55 points of profit from the market.
Price may continue to decrease today, provided that PMI for the UK services sector come out weak in the reports. In addition, if Bank of England governor Andrew Bailey introduces a super-soft monetary policy, demand for the pound will decline even further.
- Set long positions from 1.3330 (green line on the chart) to 1.3381 (thicker green line on the chart), and take profit at the level of 1.3381. Only a strong PMI data will help the pound rise in the market again.
- Sell shorts from 1.3286 (red line on the chart) to 1.3221, and take profit at price level 1.3221. However, price will decrease only if the PMI turns out worse than the forecasts.
