FX.co ★ Analysis and trading recommendations for the EUR/USD and GBP/USD pairs on July 20, 2020

Trading recommendations for the EUR / USD pair on July 20.

EUR / USD

Analysis of transactions

The recent EU summit came out unsuccessful, but did not affect the exchange rate of the European currency, which many traders were so afraid of. The leaders failed to come into an agreement regarding the budget and approval of the assistance plan proposed by the European Commission, but if the aid plan was approved, the euro would have observed a good increase in the trading chart. In the meantime, no positive news is expected in the eurozone, so it is best to bet on a decline in the euro.

• Buy positions when the quote reaches the level of 1.1430. The target is the value of 1.1475, which may be reached after the publication of PPI in Germany and the balance sheet of the ECB today. Exit the market at a value of 1.1475.
• Sell positions after the quote reaches the level of 1.1410. The target is the value of 1.1372, where it is best to exit the market, as many new buyers will be concentrated in this range. The lower border of the side channel also passes the level, in which the euro was trading within it in the second half of last week. Bad macroeconomic data on Germany will lead to increased pressure on the euro.

Trading recommendations for the GBP / USD pair on July 20.

GBP / USD

Analysis of transactions

The British pound began to weaken amid the speech of Bank of England governor Andrew Bailey last Friday, which noted that the prospects for recovery of the UK economy after the coronavirus pandemic is rather poor. In addition, a trade agreement between the UK and the EU regarding Brexit still has not yet been settled, which puts pressure on the pound.

• Buy positions when the quote reaches the level of 1.2539 (green line on the chart) in order to raise the price up to the level of 1.2573. A little below it is the trend line, which can limit the growth of the pair. Exit the market at the level of 1.2573.
• Sell positions after the quote reaches the level of 1.2515 (red line on the chart), which coincides with the weekly support level. A breakout of it will lead to a fall in the pound to the level of 1.2462, where it is best to exit the market, as many new buyers will be concentrated in that range.