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07.09.202308:49 Forex Analysis & Reviews: Trading plan for EUR/USD and GBP/USD on September 7

Pound held its ground and even attempted to show some growth until the opening of the US trading session. By then, the pair began to decline sharply, despite no events that could have influenced the market at all.

As for euro, the better-than-expected retail sales data in the eurozone prompted a rise, but at the end of the trading day, it essentially remained unchanged, indicating the stable strengthening of dollar.

It seems that investors remain convinced that the Federal Reserve will pursue a more active policy than the European Central Bank, even though several representatives already mentioned the absence of reasons to raise interest rates at the upcoming meeting. At the same time, other members caution against hasty conclusions, since inflation already delivered an unpleasant surprise.

Dollar may continue to rise today, driven in part by data on jobless claims. The number of initial claims could increase by 11,000, while the number of continuing claims could decrease by 33,000.

Exchange Rates 07.09.2023 analysis

Despite the typical volatility, EUR/USD continues to be under pressure from sellers, indicated by the stable holding of the price in the area of the base of the downward cycle. In the event of a breakthrough of 1.0700, short positions will surge, leading to subsequent declines. Meanwhile, s decline below the control level can lead to a consolidation, followed by a rebound.

Exchange Rates 07.09.2023 analysis

GBP/USD reached the support level of 1.2500, around which the volume of short positions decreased. This resulted in a slight consolidation, which, given the oversold status, could turn into a pullback. As for further declines, it will happen if the price remains stably below 1.2500.

*El análisis de mercado publicado aquí tiene la finalidad de incrementar su conocimiento, más no darle instrucciones para realizar una operación.

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