Here are the details of the economic calendar from July 19:
The economic calendar was empty on Monday in terms of important statistics from the EU, Britain, and the US, which is considered normal for that day.
Analysis of trading charts from July 19:
The EUR/USD pair showed quite strong speculative interest. As a result, the quote locally declined to the area of 1.1765, but then returned to the level of 1.1800.
As we paid attention to the price behavior before the downward impulse, the quote was clamped within the narrow borders of 1.1795/1.1825 for 35 hours, which led to the effect of accumulation of trading forces.
After that, a logical end result appeared. One of the amplitude borders breaks through, and all the trading forces accumulated at the moment of stagnation go through it.
The trading recommendation on July 19 considered a possible surge in activity, indicating the trading method of breaking through a particular border of the established range of 1.1795/1.1825. In our case, the border of 1.1795 was broken, where the outgoing impulse led us to the predicted coordinate 1.1770.
The process of accumulation of trading forces is price fluctuations in a closed amplitude, where a local acceleration in the direction of the breakdown of a particular stagnation border often occurs.
The GBP/USD pair continued to decline in the market despite the local oversold status. As a result, the quote managed to fall to the base area of March-April 2021, namely the coordinates of 1.3670.
The downward potential for the pound sterling has been repeatedly highlighted by us as a based trading strategy.
The trading recommendation on July 19 considered the sellers' desire to further weaken the pound. Therefore, a sell order was placed below the level of 1.3730 in the direction of 1.3670.
July 20 economic calendar:
Today, the United States will release its statistics on the construction sector for June, where the indicators are expected to rise, which may further strengthen the position of the US dollar in the market.
12:30 Universal time - US Construction sector
- The number of issued building permits in June may increase by 0.5%.
- The volume of construction of new houses in June may increase by 0.8%.
* 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 recommendation for EUR/USD on July 20, 2021
Looking at the EUR/USD trading chart, one can see that the level of 1.1800 acts as resistance, increasing the volume of short positions. In this situation, the past day's local low of 1.1764 should be paid attention to, as keeping the price below it may lead to further decline of the euro.
Traders consider this if the price is held below the level of 1.1760, in the direction of 1.1700.
Traders consider this if the price is held above the level of 1.1825, in the direction of 1.1850.
Trading recommendation for GBP/USD on July 20, 2021
As for the trading chart of the GBP/USD, it can be seen that the price fluctuated around the area of 1.3670, having a slight slowdown in the downward cycle. The oversold status is already observed in the market, which can lead to a technical correction, but if the price is kept below the level of 1.3640, a subsequent move towards the range of 1.3550-1.3500 is not excluded.
Traders consider this if the price is held below the level of 1.3640, in the direction of 1.3550-1.3500
Traders consider this if the price is held above the level of 1.3700, in the direction of 1.3750-1.3765.
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 individual candle in detail, you will see its characteristics of a relative time period: the opening price, the closing price, the 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 since the market will exist tomorrow, next week, next year, and the next decade.