Euro and pound saw a correction ahead of the important retail sales data from the US.

The market was rather quiet in the morning as traders are not yet willing to buy, while speculators were forced to close long positions due to uncertainty over how the UK budget and its approval will unfold, as well as what the real US retail sales data will be. A decline in the latter is very much expected, which, if really happens, will prompt a rise in euro and pound in the afternoon. But if the data points to a sharp increase in sales, pressure will return, which will lead to a fall in both EUR/USD and GBP/USD.

EUR/USD

For long positions:

Buy euro when the quote reaches 1.0705 (green line on the chart) and take profit at the price of 1.0751.

Euro can also be bought at 1.0675, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0705 and 1.0751.

For short positions:

Sell euro when the quote reaches 1.0675 (red line on the chart) and take profit at the price of 1.0639.

Euro can also be sold at 1.0705, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0675 and 1.0639.

GBP/USD

For long positions:

Buy pound when the quote reaches 1.2140 (green line on the chart) and take profit at the price of 1.2199 (thicker green line on the chart).

Pound can also be bought at 1.2108, but the MACD line should be in the oversold area as only by that will the market reverse to 1.2140 and 1.2199.

For short positions:

Sell pound when the quote reaches 1.2108 (red line on the chart) and take profit at the price of 1.2060.

Pound can also be sold at 1.2140, but the MACD line should be in the overbought area as only by that will the market reverse to 1.2108 and 1.2060.