Forex Analysis & Reviews: Trading recommendations for starters of EUR/USD and GBP/USD on July 8, 2021
time 08.07.2021 11:05 AM
time Relevance up to, 09.07.2021 10:04 AM

Here are the details of the economic calendar from July 7:

The data on the number of open vacancies in the US JOLTS labor market was published yesterday, where an increase from 9 193 thousand to 9.209 thousand in May was recorded.

* The number of open vacancies in the labor market (JOLTS) is a monthly report on open vacancies in the retail, manufacturing, 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, of course, if unemployment does not increase at this moment, then the opposite effect will take place.

In this case, we can say that the growth of open vacancies in the US has become an additional factor for the growth of the US dollar.

Analysis of trading charts from July 7:

The EUR/USD pair took the path of downward development again after a short pullback, eventually breaking through the support level of 1.1800. The last time the quote was below this level was at the beginning of April.

The trading recommendation on July 7 considered trading on the breakdown of the level of 1.1800, where it was possible to enter into positions to sell the euro.

The GBP/USD pair slowed down the decline in the area of the level of 1.3785 after a sharp downward movement on July 6. This resulted in variable turbulence within 80 points.

The absence of a recovery process relative to July 6 suggests that the downward interest is still relevant in the market.

* The recovery process is when the quote after a sharp price change (up or down) partially returns to the previous levels, which is where it all started. The recovery is usually 15-35% relative to a sharp price surge.

In our case, the recovery of the pound sterling took place, but, following the general price fluctuations on July 7, it is clear that the recovery was replaced by stagnation, returning the quote to the levels of the base of the downward momentum from July 6.

This image is no longer relevant

Trading recommendation for EUR/USD and GBP/USD on July 8, 2021

Today, the United States will release its weekly data on claims for unemployment benefits, whose volume is expected to decline.

  • The volume of initial applications for benefits may fall from 364 thousand to 350 thousand.
  • The volume of repeated applications for benefits may fall from 3,469 thousand to 3,335 thousand.

* Applications for unemployment benefits reflect the number of currently unemployed citizens and those receiving unemployment benefits. This indicator is considered to be the state of the labor market, where the growth of the indicator negatively affects the level of consumption and economic growth. The reduction of applications for benefits has a positive effect on the labor market.

To simply put it, a decline in the number of applications for benefits can lead to a strengthening of the national currency – the US dollar.

12:30 Universal time - Applications for US unemployment benefits

Looking at the EUR/USD trading chart, one can see the price fluctuation within the control level of 1.1800. In order for the downward cycle to continue its formation, the quote must be kept below the level of 1.1800. In this case, an increase in the volume of short positions is not excluded, which will eventually lead to a price movement towards the base of the current year in the face of the support level of 1.1700.

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

* The support level is the so-called price level, from which the quote can slow down or stop the downward course. The principle of building this level is to draw pivot points on the chart history, where the price reversal in the market has already occurred earlier.

It is worth considering that the support level cannot be eternal and constantly leads to a price reversal. Therefore, traders always have an alternative scenario for the development of the market, which considers the breakdown of this level.

This image is no longer relevant

As for the trading chart of the GBP/USD, it shows that that the quote is still focused on the next decline, but in order to reduce the risks of false price fluctuations, the quote must hold below the local low of 1.3730 from July 2. In this case, the downward trend cycle may open the way towards the level of 1.3670, which is the bottom of the previous downward cycle.

This image is no longer relevant

Gven Podolsky,
Chuyên gia phân tích của InstaForex
© 2007-2022
Benefit from analysts’ recommendations right now
Top up trading account
Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.

  • Giao dịch khôn ngoan, thành công
    Nạp tiền vào tài khoản của bạn với ít nhất $ 500, đăng ký cuộc thi và có cơ hội giành được các thiết bị di động.
  • Ferrari từ InstaForex
    Nạp tiền vào tài khoản của bạn với ít nhất 1.000
    tham gia cuộc thi và giành chiến thắng Ferrari
    F8 Tributo
  • Tiền gửi lần truy cập
    Gửi vào tài khoản của bạn 3.000 đô la và giành được 1.000 đô la
  • 100% tiền thưởng
    Cơ hội duy nhất của bạn để nhận 100% tiền thưởng khi gửi tiền
  • 55% Tiền thưởng
    Đăng ký tiền thưởng 55% cho mỗi lần gửi tiền của bạn
  • 30% tiền thưởng
    Nhận 30% tiền thưởng mỗi khi bạn nạp tiền vào tài khoản của mình

Recommended Stories

How to trade GBP/USD on November 29, 2022. Simple trading tips and analysis for beginners

GBP/USD trade was discreet and had no distinct movements. Thus, the euro and the pound trade were absolutely different from each other, which is quite rare. The pound settled below

Paolo Greco 22:40 2022-11-28 UTC+2

How to trade EUR/USD on November 29, 2022. Simple trading tips and analysis for beginners

The EUR/USD trade went through many sudden changes on Monday. It sharply grew in the morning, and suddenly dropped in the afternoon. By the end of the day the pair

Paolo Greco 22:40 2022-11-28 UTC+2

EUR/JPY: level of 143.27 seen as key downside obstacle

The EUR/JPY pair dropped again after failing to reach the 145.00 psychological level or to approach the downtrend line. At the time of writing, it was trading at 143.55

Ralph Shedler 22:00 2022-11-28 UTC+2

USD/CAD: upside continuation

The USD/CAD pair registered a strong upside movement after retesting the 1.3325 downside obstacle (the upside obstacle turned into a downside obstacle). Now, is almost to reach the 1.3495 former

Ralph Shedler 21:26 2022-11-28 UTC+2

Bitcoin's upside invalidated, 15,632 as key support

The price of Bitcoin slipped lower after reaching the 16,783 level. Now, it is trading at 16,178 at the time of writing. In the short term, it could move sideways

Ralph Shedler 21:00 2022-11-28 UTC+2

Ethereum: upside still possible

Ethereum dropped in the short term also because BTC/USD slipped lower. It is testing and retesting the near-term downside obstacles. Despite the current retreat, the altcoin could still

Ralph Shedler 20:59 2022-11-28 UTC+2

USD/JPY seems oversold at around 137.65

The USD/JPY pair dropped as much as 137.49 today where it has found support. Now, it has rebounded and it's trading at 138.77 at the time of writing. The bias

Ralph Shedler 18:58 2022-11-28 UTC+2

November 28, 2022 : EUR/USD daily technical review and trading opportunities.

Now the market remains under buying pressure until significant downside rejection occurs around one of the key- levels probably around 1.0600. In the mean time, any downside movement towards 1.0000

Mohamed Samy 18:43 2022-11-28 UTC+2

November 28, 2022 : EUR/USD Intraday technical analysis and trading plan.

Another bearish pullback to test the price levels of 0.9500 was recently executed. Intensive bullish price action was demonstrated around the lower limit of the current movement channel. Initial bullish

Mohamed Samy 18:42 2022-11-28 UTC+2

November 28, 2022 : GBP/USD Intraday technical analysis and significant key-levels.

Quick bearish decline was executed towards 1.1075 & 1.0860 where significant Fibonacci Expansion levels were located. Based on the upcoming price action and the next weekly candlestick closure, the next

Mohamed Samy 18:42 2022-11-28 UTC+2
Không thể nói chuyện ngay bây giờ?
Đặt câu hỏi của bạn trong phần trò chuyện.