FX.co ★ Analysis and trading recommendations for the EUR/USD and GBP/USD pairs on August 18

Trading recommendations for the EUR/USD pair on August 18

Analysis of transactions

The attempts to overcome the price level of 1.1840 failed to trigger a drop in the European currency, so sell transactions in the EUR/USD pair did not give profit as expected. Fortunately, buy transactions from the level of 1.1869 covered all the losses that traders had in the first half of the day.

The absence of important macroeconomic statistics has led to such a narrow trade in the euro, and, the situation may repeat today, so it is best to exit the market after any prerequisites for a price reversal.

• Buy positions when the quote reaches a price level of 1.1895 (green line on the chart), targeting a rise to the level of 1.1933. The increase may occur, on the grounds of a continued impulse relative to Friday's weak US economic indicators. Take profit at the level of 1.1933.
• Sell positions after the quote reaches the level of 1.1869 (red line on the chart), targeting a drop towards the level of 1.1831. Take profit at a price level of 1.1869.

Trading recommendations for the GBP/USD pair on August 18

Analysis of transactions

Buy transactions failed to raise the GBP/USD pair in the market yesterday, but the situation has completely changed today during the Asian session.

Since there are no important macroeconomic reports scheduled to be published today, the direction of the pair depends on the activity of the bulls in the market. Demand for the dollar continues to decline at the moment, especially since gold has also risen in the market. Because of this, the GBP/USD pair is certain to further increase today in the trading chart.

• Buy positions when the quote reaches the price level of 1.3141 (green line on the chart), targeting a rise to the level of 1.3175 (thicker green line on the chart). Take profit at the level of 1.3175.
• Sell positions after the quote hits the price level of 1.3108 (red line on the chart), and take profit at the level of 1.3063.