Analysis and trading recommendations for the EUR/USD and GBP/USD pairs on November 3

Analysis of transactions in the EUR / USD pair

The bears failed to maintain their control over the market, so as a result, the EUR / USD pair rose a bit yesterday.

To add to that, rather good economic reports came out from Europe. However, they may turn down this 4th quarter amid new quarantine restrictions imposed in many EU countries.

Trading recommendations for November 3

Of great importance is the results of the US presidential elections, as it will determine whether the US dollar will maintain its position in the market, or weaken against other currencies such as the euro. If Joe Biden wins, the US dollar will weaken sharply. In that case, long positions will be a more correct decision, since from a technical point of view, going beyond the sideways channel 1.1631-1.1661 will lead to a new wave of growth in the EUR / USD pair.

Open a long position when the euro reaches a quote of 1.1661 (green line on the chart), and then take profit at the level of 1.1716. However, growth will only occur if Joe Biden wins the US presidential elections.Open a short position when the euro reaches a quote of 1.1631 (red line on the chart, and then take profit around the level of 1.1579. However, a decline will only occur if Donald Trump wins the US presidential elections, as such will give the markets strong confidence in a stable future.

Analysis of transactions in the GBP / USD pair

Although short positions from 1.2906 moved the pound down by more than 40 pips, the bears failed to maintain their control over the market, so as a result, the GBP/USD pair rose a bit yesterday.

To add to that, there are rumors that negotiations over the post-Brexit trade deal are progressing smoothly, thus, a further price decline is now unlikely to happen in the GBP/USD pair.

Trading recommendations for November 3

Of great importance is the results of the US presidential elections, as it will determine whether the US dollar will maintain its position in the market, or weaken against other currencies such as the British pound. To add to that, good news over Brexit negotiations will raise demand for the pound in the short term.

Open a long position when the quote reaches the level of 1.2939 (green line on the chart), and then take profit around the level of 1.3002 (thicker green line on the chart).Open a short position when the quote reaches the level of 1.2906 (red line on the chart), and then take profit at least at the level of 1.2856. Bad news on Brexit, as well as Trump's victory on the US presidential elections, will continue the downward trend in the GBP / USD pair.