Here are the details of the economic calendar for Sept 20:
The economic calendar was empty yesterday since important statistics from Europe, Britain, and the United States were not published.
Analysis of trading charts from September 20:
The Euro fell to the support level of 1.1700 during a sharp downward movement, where the price rebound stopped. A similar scenario of the development of the quote was expected on the market due to the high level of oversold in the euro.
In just five trading days, the European currency declined by almost 150 points, or 1.2%, which is considered a strong price change in a short period of time.
The trading plan on September 20 considered the scenario of a price rebound from the level of 1.1700 if market participants fail to consolidate below it.
The GBP/USD pair showed an even sharper decline, during which the quote plunged to the level of 1.3640. This is a very strong price change in a short period of time. In fact, dollar positions have fully recovered in relation to the correction during the recession from August 23 to September 3.
The trading plan on September 20 considered the possibility of slowing down the downward course within the levels of 1.3650 or 1.3600, which actually happened on the market.
* Oversold market – a situation where prices have fallen too low and quickly. In this case, we are talking about the euro, which has lost almost 70 points from its value in a short period of time.
* The support level is the so-called price level, from which the quote can slow down or stop the downward course. The principle of constructing this level is to reduce the points of support on the history of the chart, where the price reversal in the market has already occurred earlier.
September 21 economic calendar:
In terms of the economic calendar, the United States will release its statistics on the construction sector for June at 12:30 Universal time, where they forecast a slight change in indicators.
- The number of issued building permits in August may fall by 1.8%.
- The volume of construction of new houses in June may grow by 2%.
* Construction permits are the absolute number of permits for the construction of new residential buildings issued by state bodies in the reporting month. The U.S. Census Bureau collects this data by sending requests to permitting agencies across the country. The monthly survey sample covers 9,000 permit-issuing points across the country.
• The volume of construction of new houses is the absolute number of new housing construction projects that began in the reporting month.
Trading plan for EUR/USD on September 21:
In this situation, there is still a technical pullback in the market, which may well be replaced by price stagnation. A subsequent decline is possible only after the price is kept below the level of 1.1700. In this case, the quote will most likely update the local lo
Trading plan for GBP/USD on September 21:
Analyzing the current trading chart, a pullback from the variable pivot point of 1.3650 will be visible. There is still a downward interest in the market, despite the temporary stagnation. Thus, keeping the price below the level of 1.3640 will lead to an increase in the volume of short positions, which will open the way towards the range of 1.3600-1.3570.
• Short positions or Short means sell positions.
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.
Golden Rule: It is necessary to figure out what you are dealing with before starting to trade with real money. Learning to trade is so important for a novice trader because the market is constantly dynamic and it is important to understand what is happening.