Analysis of transactions in the EUR / USD pair
The lack of news last Friday morning hindered the euro bulls in fully utilizing the upward potential of the European currency, although there were preconditions for it. The recently published data for the US labor market, although came out worse than expected, on the contrary, harmed the upward potential of the euro, and led to a slight strengthening of the US dollar, since the overall situation remains favorable enough to count on market recovery in the United States.
Trading recommendations for December 7
Today, a very important report on EU investor sentiment will be published, in which a sharp decline in the indicator will negatively affect the European currency, which, at the moment, is experiencing growth problems due to the upcoming meeting of the European Central Bank this week, during which significant adjustments to the economic stimulus program may be made. But if the report turns out to be better than expected, we can expect the euro to continue growing and to update this year’s high. Then, in the afternoon, data on US lending will be published, but it is unlikely to affect the position of the US dollar. Most likely, only bad news on Brexit will lead to a serious surge in volatility.
Open a long position when the euro reaches a quote of 1.2146 (green line on the chart) and then take profit at the level of 1.2186. However, growth can only happen if the EU releases good data on investor sentiment. Open a short position when the euro reaches a quote of 1.2124 (red line on the chart) and then take profit around the level of 1.2078. However, do this only if data on the EU comes out worse than expected, and if the risk of not signing a post-Brexit trade deal increases.
Analysis of transactions in the GBP / USD pair
Although pound bulls were active in the market last week, the upward trend did not continue, mainly due to the fact that there are no strong reasons to buy the British pound. Moreover, in the afternoon, demand for the currency declined after France reiterated that it will block the post-Brexit trade deal if it is not satisfied with the clauses inside it.
Trading recommendations for December 7
The pound will continue to move depending on the progress of Brexit negotiations. At the moment, the risk of having a no post-Brexit deal is increasing, especially since the period for negotiations is nearing its end. If the issue on fisheries is finally resolved, the chances of signing a trade deal will increase, which will raise demand for the British pound, thereby leading to a new wave of growth in the GBP / USD pair. But if it is announced again that both parties failed to make any concessions, the pressure on the currency would increase, which will result in another decline in the GBP / USD pair.
Open a long position when the quote reaches the level of 1.3444 (green line on the chart) and then take profit around the level of 1.3533 (thicker green line on the chart). Good news on Brexit may strengthen the position of the British pound. Open a short position when the quote reaches the level of 1.3408 (red line on the chart) and then take profit around the level of 1.3326. Bad news on Brexit will resume the downward trend in the GBP/USD pair.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
If you have an interest in any area of Forex Trading, this is where you want to be.
Global Fx Trading Group is a world leader in providing Fx services to individual traders, including: Unmatched funding programs, on-line education, virtual trading rooms, automation tools, robot building, and personal coaching.
The company was first established by Jeff Wecker, former member of the Chicago Board of Trade, with 25 years in the industry. Jeff has a keen understanding of the needs of Forex traders and those needs are our focus.
Please join our VIP Group while is still FREE …
https://t.me/joinchat/JqsXFBKpyj3YS4bLWzT_rg
Our mission is simple: To enhance as many lives as we can through education and empowerment.
#theforexarmy #forexsigns #forexsignals #forexfamily #forexgroup #forexhelp #forexcourse #forextrade #forexdaily #forexmoney #forexentourage #forextrading #forex #forexhelptrading #forexscalping #babypips #forexfactory #forexlife #forextrader #financialfreedom
