FX.co ★ Analysis and trading recommendations for the EUR/USD and GBP/USD pairs on November 4

Analysis of transactions in the EUR / USD pair

Purchases on the European currency, on the confidence that Joe Biden will win the US elections, brought in a rather good profit yesterday - long positions from 1.1661 to 1.1716 gave about 50 pips of profit in the market.

However, as of the moment, Trump is dominating by a small margin in many states, and this is a direct path to the strengthening of the US dollar.

Trading recommendations for November 4

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. Aside from that, the latest reports on the eurozone services sector will affect demand for the euro in the market, that is, a decline in activity will trigger a strong decline in the EUR / USD pair, as such is a bad sign for the economy , as well as for the prospects of the European currency.

• 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 1.1763. However, growth will only occur if Joe Biden wins the US presidential elections.
• Open a short position when the euro reaches a quote of 1.1622 (red line on the chart, and then take profit around the level of 1.1544. 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

Purchases of the British pound, on the confidence that Biden will win, made good profit in the market, which offset the losses seen in the past days. Long positions from 1.2939 to 1.3006 brought in over 60 pips of profit. However, Trump's current preponderance led to the collapse of the British pound in the Asian session.

Trading recommendations for November 4

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. Aside from that, the latest report on the UK services sector will affect the demand for the pound in the market, that is, its sharp contraction could lead to another strong decline in the GBP / USD pair.

• Open a long position when the quote reaches the level of 1.3023 (green line on the chart), and then take profit around the level of 1.3186 (thicker green line on the chart). Good data on the UK services sector will strengthen buyers' expectations for further growth in the GBP/USD pair.
• Open a short position when the quote reaches the level of 1.2959 (red line on the chart), and then take profit at least at the level of 1.2859. 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.