empty
 
 

Forex Analysis & Reviews: Trading recommendations for starters of EUR/USD and GBP/USD on July 7, 2021
time 07.07.2021 10:45 AM
time Relevance up to, 08.07.2021 09:31 AM

Here are the details of the economic calendar from July 6:

Yesterday, Europe released its data on the volume of retail sales, where there was an increase of 4.6% in May against the expected 4.4%.

* The volume of retail sales is one of the main economic indicators, which is an indicator of the change in sales volume in the context of retail trade. In simple words, this indicator reflects the purchasing power of the population.

The growth in the volume of retail sales is a positive signal for the economy, but judging by the trading schedule, no one looked at the statistics. Everyone played the information background.

What did the euro and the pound sterling react so strongly to?

The news appeared in the media that the UK plans to lift the restrictive measures imposed due to coronavirus infection from July 19. On the one hand, this is very positive news, if the situation with COVID-19 has normalized in the country, but, according to the statistics of the daily increase in new cases of infection, this suggests the opposite.

The UK Health Secretary Sajid Javid has warned that new cases of the coronavirus could rise to 100,000 a day over the summer. Moreover, the business is concerned that the existing restrictions will be replaced by recommendations that are not specified at the moment, and there are still a lot of questions to them.

The value of the pound sterling was rapidly declining due to fears, and we had a similar price movement due to the positive correlation with the Euro currency.

Positive correlation is a relationship between trading instruments, where one currency pair pulls another in the same direction.

This image is no longer relevant

Analysis of trading charts from July 6:

The EUR/USD pair still managed to resume its downward movement after wobbling within the borders of 1.1835/1.1890 temporarily. It broke through the level of 1.1835 and headed towards a variable pivot point, namely the level of 1.1800.

The trading recommendation on July 6 considered trading on the breakdown of a particular border of the stagnation of 1.1835/1.1890. As a result, traders managed to open positions to sell euros.

The GBP/USD pair showed a fairly strong downward interest yesterday, where the control coordinates of 1.3835 were broken, which indicated an increase in the volume of short positions.

The trading recommendation on July 6 considered the possibility of opening sell positions if the price kept below the level of 1.3835, which ultimately brought a quite large profit.

Short positions or Short means positions to sell in anticipation of a decline in the value of the asset.

Trading recommendation for EUR/USD and GBP/USD on July 7, 2021

Today, the United States will release its data on the number of open vacancies in the JOLTS labor market, where they predict their growth by 9.388 thousand in May.

* The number of open vacancies in the labor market JOLTS is a monthly report on open vacancies in the commercial, industrial and office sectors of the United States. This report is prepared by the US Bureau of Labor Statistics, which is created on the basis of surveys of employers.

The increase in the number of open vacancies is a positive signal for the labor market and the economy as a whole. If unemployment does not increase at this moment, then the opposite effect will take place.

Looking at the EUR/USD trading chart, one can see the price rebound from the pivot area of 1.1800/1.1815, as if we have a logical basis from July 2, where similar price behavior was observed.

In order for the downward movement to acquire the most impressive price changes, the quote must hold below the level of 1.1800, which will open the way towards this year's base of 1.1700.

This image is no longer relevant

As for the trading chart of the GBP/USD, it shows that the quote is moving in the pullback phase due to the high oversold level caused by the recent price decline.

It should be noted that the pullback stage is currently considered a local price change. If the volume of short positions begins to rise again, and the quote manages to stay below the level of 1.3770, a price movement towards 1.3730 is not excluded.

* An oversold market is when prices have fallen too low and very quickly. In this case, we are talking about the pound sterling, which weakened by more than 0.8% in a short period of time, which led to the oversold status. This status can lead to a local pullback, where they buy a cheaper currency.

  • Short positions or Short means positions to sell in anticipation of a decline in the value of the asset.

This image is no longer relevant

Gven Podolsky,
Analytical expert of InstaForex
© 2007-2022
立即从分析师的建议受益
充值交易账户
开设交易账户

InstaForex分析评论将让您充分了解市场趋势! 作为InstaForex的客户,您将获得大量的免费服务以实现有效的交易。

  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • Ferrari from InstaForex
    Top up your account with at least $1,000
    join the contest and win Ferrari
    F8 Tributo
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and win $1,000
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS

Recommended Stories

Euro: Business as usual, time for fun

Thanksgiving day, the closing of the U.S. stock markets and the outflow of liquidity caused the EUR/USD pair to get bored at the end of the last full week

Marek Petkovich 13:58 2022-11-26 UTC+2

AUD/NZD. Marathon: Kiwi starts and wins

This week, the New Zealand dollar received substantial support from the Reserve Bank of New Zealand: the central bank fully justified the hawkish hopes of most experts by raising

Irina Manzenko 13:54 2022-11-26 UTC+2

EUR/USD. Stubborn 4th figure: Bulls have reached the limit of their capabilities

Bulls on the EUR/USD pair are desperately trying to rise above the 1.0400 level: they repeatedly tried to attack the 4th figure in November, but failed each time. Traders fail

Irina Manzenko 13:43 2022-11-26 UTC+2

Weekly review of GBP/USD for November 21-25, 2022

All elements being clearly bullish, it would be possible for traders to trade only long positions on the GBP/USD pair as long as the price remains well above the golden

Mourad El Keddani 13:42 2022-11-26 UTC+2

Oil ended the week in the red, and the EU countries are in disagreement

Even though this week ended in the red, oil prices rose steadily during Friday trading. The market is still being affected by traders' concerns about China's potential oil demand

Natalia Andreeva 09:21 2022-11-26 UTC+2

GBP/USD. Analysis for the trading week of November 21-25. COT report. The decision of the British Supreme Court supported the pound.

During the most recent week, the GBP/USD currency pair has risen by an additional 200 points. This means that the upward trend is still going strong, and the pound

Paolo Greco 08:54 2022-11-26 UTC+2

EUR/USD. Analysis for the trading week of November 21-25. COT report. The euro currency is once again supported by the market.

This week, the EUR/USD currency pair has again been trading higher. This week, the macroeconomic and fundamental background was nonexistent, but traders still bought euros. Similar trends have been observed

Paolo Greco 08:54 2022-11-26 UTC+2

Ethereum confirms its breakout

ETH/USD retreated a little in the short term after its strong rally. The retreat was natural and now it has developed a bullish pattern. It was trading at 1,185

Ralph Shedler 18:48 2022-11-25 UTC+2

USD/CHF in range pattern, 0.9393 as downside obstacle

The currency pair is moving sideways in the short term. It was trading at 0.9457 at the time of writing. It's trapped between 0.9383 (downside obstacle) and 0.9599 (upside obstacle)

Ralph Shedler 18:47 2022-11-25 UTC+2

Bitcoin continues to trade sideways in a new trading range.

After the FTX scandal and the sell off towards $15,500, Bitcoin has found some balance and is mostly moving sideways. The bulls are absent and there is not enough strength

Alexandros Yfantis 17:57 2022-11-25 UTC+2
现在无法通话?
提出您的问题,用 在线帮助.