The US dollar went on the offensive last Friday, however, the scale of price changes is still small. This indicates that the position of the dollar is still considered as attractive in the market.

A lot of UK statistics were published on the economic calendar. Here, November's monthly GDP reflected a slowdown of -2.6%, against an even worse forecast of -5.7%. The volume of industrial production, which was published in sync with GDP, also had a slowdown in the decline – from -5.8% to -4.7%, with a forecast of -4.2%.

It can be noted that the economic indicators were not the best at the time of publication. As a result, the pound declined at the very opening of the European session.

In turn, December data on US retail sales were released in the afternoon, where they were forecast to remain unchanged. However, this resulted in a decline of -0.7%. In annual terms, it declined from 3.68% to 2.90%.

The US dollar did not react to the negative statistics.

What happened on the trading charts?

The EUR/USD pair managed to break through the support level of 1.2130 after moving around it for some time, and held the quote below the level of 1.2100. Sellers then opened the way to the coordinate of 1.2070, which was initially forecasted.

It is possible to earn around 50 pips ($ 50 per 1 Instalot), if you move based on our recommendation of selling euros and buying dollars.

The GBP/USD pair repeatedly approached the resistance area of 1.3690/1.3710 despite the local high of the mid-term trend. It also still managed to move into the correction stage after holding the price below the level of 1.2600.

Last Friday's trading recommendation about selling the pound totally coincided, where the path of the 1.3690/1.3705 area was initially passed to the variable level of 1.3615. And after holding the price below the level of 1.3600, the second path to 1.3500 opened.

Trading recommendations on EUR/USD and GBP/USD for January 18, 2021

Today, any noteworthy statistics from Europe and the UK is not expected, while it is a holiday in the US in celebration of Martin Luther King Day. Thus, exchanges will be closed, which may affect trading volumes due to the lack of a major player in the market.

If we look at the trading chart of EUR/USD, the quote can be seen moving within the variable pivot point 1.2070, while showing a downward interest. If the price is held below the level of 1.2060 in the four-hour time frame, a possible decline in the direction of 1.2000 can be expected.

As for the current trading chart of GBP/USD, it can be seen that sellers are pulling down the pound sterling, which is quite normal due to its high overbought status.

It can be assumed that the US dollar still has a chance to rise towards the level of 1.3450.