Details of the economic calendar from May 23

Monday was traditionally accompanied by a blank macroeconomic calendar. Important statistics in Europe, the UK, and the United States were not released.

Analysis of trading charts from May 23

The EURUSD currency pair overcame the resistance level of 1.0636 during the upward cycle. As a result, the correction from the local bottom of 2016, at 1.0349, was prolonged in the market. The euro exchange rate has strengthened by more than 340 points during the correction.

The GBPUSD currency pair overcame the resistance level of 1.2500, which led to the prolongation of the corrective move. The current strengthening of the pound sterling is considered the strongest since December last year. This is caused by a protracted downward cycle, during which short positions were heavily overheated.

Economic calendar for May 24

Preliminary data on business activity indices for May in Europe, Britain, and the United States will be published today. A widespread decline in indicators is expected, which may lead to variable fluctuations in the market.

Time targeting

Business activity indices in the EU - 08:00 UTC

Business activity indices in Britain - 08:30 UTC

Business activity indices in the US - 13:45 UTC

Trading plan for EUR/USD on May 24

In this situation, overheating of long positions can lead to a pullback, while the upward interest will still prevail in the market. The next round of growth is expected after the price holds above the 1.0700 mark.

An alternative scenario will be considered by traders in case the price returns below the 1.0600 mark in a four-hour period. In this case, a signal of completion of the corrective move may occur.

Trading plan for GBP/USD on May 24

The previously passed level of 1.2500 currently plays the role of a support in case of a pullback in the market. The subsequent increase in the volume of long positions is expected at the time of holding the price above 1.2600. In this case, buyers will have the possibility of further growth towards the level of 1.2700.

If the pullback drags on, and the quote needs to stay below the level of 1.2500, the first signal of the completion of the corrective move may appear.

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.