Details of the economic calendar from May 24

Preliminary data on business activity indices for May in Europe, Britain, and the United States were published, where investors did not see anything good.

In Europe, the index of business activity in the service sector fell from 57.7 to 56.3, while the forecast was 57.5. The index of business activity in the manufacturing sector fell from 55.5 to 54.9, but was expected to decline to 55.3. The composite index fell from 55.8 to 54.9.

In the UK, the situation is even worse, which caused a stronger weakening of the British currency. The index of business activity in the service sector fell from 58.9 to 51.8, it was expected to decline only to 58.5. The index of business activity in the manufacturing sector fell from 55.8 to 54.6. The composite index fell from 58.2 to 51.6.

During the American trading session, a similar package of statistical data was published, but for the United States.

The index of business activity in the manufacturing sector fell from 59.2 to 57.5. The service sector index fell from 55.6 to 53.5. As a result, the composite index fell from 56.0 to 53.8.

US statistics put pressure on the dollar.

Analysis of trading charts from May 24

The euro strengthened by almost 400 points against the dollar in a week and a half. This movement is considered in the market as a correction, which does not violate the integrity of the medium-term downward trend.

The GBPUSD currency pair, during a recent pullback, returned to the level of 1.2500, where it reduced the volume of short positions. This led to the price holding above the control value, followed by stagnation.

Economic calendar for May 25

Today, data on orders for durable goods in the United States will be published, which may increase by 0.6%. The changes are not that significant, so don't count on a strong market reaction.

Time targeting

US Durable Goods Orders - 12:30 UTC

Trading plan for EUR/USD on May 25

Despite the overbought status of the euro, the corrective move is still relevant in the market. The price area of 1.0770/1.0800 is considered as resistance on the way of buyers. In theory, it can put pressure on long positions, which will lead to a reduction in their volume.

If expectations coincide, the quote may return below the level of 1.0636.

Trading plan for GBP/USD on May 25

The previously passed level of 1.2500 plays the role of variable support. In this case, the signal about the prolongation of the corrective move will be received from the market at the moment of holding the price above 1.2600. This step will open the way for buyers toward the level of 1.2700.

An alternative scenario for the development of the market considers the completion of the correction. In order for this signal to be confirmed, the quote needs to stay below 1.2430 in a four-hour period.

What is reflected in the trading charts?

A candlestick chart view is graphical rectangles of white and black light, with sticks on top and bottom. When analyzing each candle in detail, you will see its characteristics of a relative period: the opening price, closing price, and maximum and minimum prices.

Horizontal levels are price coordinates, relative to which a stop or a price reversal may occur. These levels are called support and resistance in the market.

Circles and rectangles are highlighted examples where the price of the story unfolded. This color selection indicates horizontal lines that may put pressure on the quote in the future.

The up/down arrows are the reference points of the possible price direction in the future.