FX.co ★ Trading plan for the American session on August 7, EUR/USD and GBP/USD

EUR/USD

To open long positions for EURUSD, you need:

While the pair is above the level of 1.1791, there remains a chance for further recovery to a larger resistance loss of 1.1839, where I recommend locking in profit for today. In the event of a return of the euro towards a level of 1.1791, it would be best to rely on buying after updating the larger support area of 1.1741.

To open short positions for EURUSD, you need:

In the afternoon, sellers will try to get below the level of 1.1791, which will raise the chances for the euro to fall into the daytime support area of 1.1741 and also to update a new low in the range of 1.1671. However, the surge in volatility will directly depend on the statements made by representatives of the Federal Reserve during the US session. In case the euro rises, a return to selling would be best after the resistance test of 1.1839.

GBP/USD

To open long positions for GBPUSD it requires:

In the morning, although buyers did a false breakdown of the intermediate support level for 1.3045, a larger upward trend did not occur. In case there is a return of the GBP/USD, the floor is at a level of 1.3039. It would be best to consider long positions in the pound after updating 1.3003 or immediately to rebound from a large support of 1.2963.

To open short positions for GBPUSD, you need:

Sellers will rely on a breakthrough and consolidation below 1.3039, which will lead the pound towards larger support levels of 1.3003 and 1.2963. If the pair increases in the second half of the day, you can immediately return to selling the British pound for a rebound of 1.3086 with a small stop-order higher.

Indicators

• MA (average sliding) 50 days - yellow
• MA (average sliding) 30 days - green
• MACD: fast EMA 12, slow EMA 26, SMA
• Bollinger Bands 20