FX.co ★ Analysis and trading recommendations for the EUR/USD and GBP/USD pairs on July 21, 2020

Trading recommendations for the EUR / USD pair on July 21

EUR / USD

Analysis of transactions

The "buy" signal presented for the European currency yesterday was correct, as the long positions traded after the test of 1.1430 (green rectangle in the chart) led to a 30-point increase in the EUR / USD rate.

The euro arose amid news that the EU summit, which was extended on Monday, had finally ended successfully. There, the 7-year budget of the European Union was finally approved, as was the 750-billion recovery plan proposed by the European Council to help the eurozone economy.

• Buy positions when the quote reaches the level of 1.1448 in order to get an increase up to the value of 1.1490. Such may occur after the EU leaders make a number of statements regarding the agreements made during the summit. Exit the market when the quote reaches 1.1490.
• Sell positions after the quote reaches the level of 1.1415 in order to decrease the pair to a value of 1.1372. Such coincides with the low reached this week, as well as the lower limit of the side channel, in which the euro was traded in the second half of last week.

Trading recommendations for the GBP / USD pair on July 21

GBP / USD

Analysis of transactions

The "buy" signal for the British pound worked out positively, as in the level 1.2539, from which buy positions were recommended yesterday, a reversal occurred, which brought about 35 points of profit.

The pound arose amid news that the EU will make concessions to the UK regarding Brexit, following the successful summit yesterday. In addition, important macroeconomic reports, which may affect the market, are not scheduled for release today, so the pound may continue its rise.

• Buy positions when the quote reaches the level of 1.2674 (green line on the chart) in order to get a rise up to the level of 1.2725 (thicker green line on the chart). Exit the market when the price reaches a value of 1.2725.
• Sell positions after the quote reached the level of 1.2642 point (red line on the chart), which coincides with yesterday's pullback level observed before the Asian session. A breakout from which will lead to a decrease in quotes to the level of 1.2590, where it is best to exit the market, as many new buyers will be concentrated in the range.