Analysis of transactions in the EUR / USD pair
Yesterday seems to be one of the worst trading days in the European currency. Volatility was quite low and the pair traded in a narrow sideways channel. A false sell signal also emerged, which led to a rather huge loss to euro bears. The quote only managed to move 10 pips down from 1.2142. Even long positions from 1.2163 did not bring the desired result. There was no breakout nor a new bullish trend.
Trading recommendations for December 16
The movement of EUR / USD will depend today on the decision of the Federal Reserve regarding its monetary policy. If the bond purchase program is increased, the position of the dollar will weaken. But if the regulator takes a wait-and-see attitude, the dollar will rise against the euro.
Aside from that, a report on the eurozone's services sector will also be published. If the preliminary figure for December comes out better than expected, the euro will grow (even before the Fed meeting).
Analysis of transactions in the GBP / USD pair
Sadly, short positions from 1.3307 did not bring the desired result, as the quote only moved 20 pips down in the market. Meanwhile, long positions from 1.3350 earned quite a lot of profit, with the pound climbing 45 pips up from the entry level. Those who were more persistent managed to get 90 pips, since the price almost reached the target level of 1.3437.
Trading recommendations for December 16
A report on the UK services sector will be released today, which is quite important for the economy. The indicator is expected to return to a level of 50 points, which will indicate the resumption of growth in activity. If it doesn't, the pressure on the pound could return.
At the same time, there will also be news on Brexit, which may lead to another explosion of volatility in the market. After that, there will also be reports regarding the meeting of the US Federal Reserve, but they are unlikely to be of serious importance to the GBP / USD pair.