Here are the details of the economic calendar from July 16:
Last Friday, Europe's inflation data was released, where consumer prices declined from 2.0% to 1.9%. This was the final data, so to put it simply, the market was already ready for them based on the preliminary estimate, which reflected the slowdown in inflation to 1.9%.
When the market is ready for statistics, and it coincides, nothing drastic happens in the market due to the fact that the news is already taken into account in the price.
* The consumer price index is prepared by the Statistical Service of the European Union (Eurostat), which determines the change in prices of the selected basket of goods and services for a given period. This indicator is considered a key indicator for assessing inflation. From the point of view of fundamental analysis, an increase in inflation is a positive signal for the national currency, but when consumer prices rise faster than forecasts, this is considered not the best signal, and this can lead to speculative manipulations in the markets.
During the US trading session, American data on the volume of retail sales were published. According to the data of the Ministry of Trade of the country, the indicator rose by 0.6% in June compared to the previous month.
* The volume of retail sales is one of the main economic indicators, which is an indicator of the change in sales volume in the context of retail trade. In simple words, this indicator reflects the purchasing power of the population.
- The growth in retail sales is a positive signal for the economy and, as a result, for the growth of the national currency.
- The decline in retail sales is a negative signal for the economy and, as a result, for the weakening of the national currency.
Analysis of trading charts from July 16:
The EUR/USD pair concentrated trading forces within the support level of 1.1800, forming an amplitude within the borders of 1.1795/1.1825 at the end of the day.
Such an outcome was expected in the market, so it was recommended to work on a breakdown of one or another amplitude limit (1.1795/1.1825). This step removed a considerable amount of risk from our possible trading transactions.
* 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.
* The accumulation process is a price fluctuation in a closed amplitude, where a local acceleration in the direction of the breakdown of a particular stagnation border often occurs.
By the phrase "concentrated trading forces", we meant the accumulation process.
After a series of speculative fluctuations within the range of 1.3800/1.3900, the GBP/USD pair still managed to determine the direction, eventually breaking through the level of 1.3800.
The trading recommendation on July 16 considered the result of a possible breakdown of one or another border. This indicated trading using the breakdown method, which ultimately brought us a profit.
July 19 economic calendar:
There are no significant statistics from the EU, Britain, and the United States today. Therefore, the market will be focused on information flow and technical analysis.
In most cases, Monday will not contain important statistics in the economic calendar, but this does not mean that the market will stand in one place on this day.
Trading recommendation for EUR/USD on July 19, 2021
Looking at the EUR/USD trading chart, one can see that a closed cycle of fluctuations in the borders of 1.1795/1.1825 persists in the market, which leads to abundant attention from speculators. In this case, the best trading tactic is considered to be the method of breaking a certain limit of the amplitude working on the outgoing impulse.
Sell positions:
This will be considered if the price is held below the level of 1.1795, towards 1.1770.
Buy positions:
This will be considered if the price is held above the level of 1.1825, towards 1.1850.
Trading recommendation for GBP/USD on July 19, 2021
As for the trading chart of the GBP/USD, it can be seen that amid a sharp decline, the quote approached the month base 1.3730/1.3750, which is considered a variable pivot point in the market.
In this situation, there may be a slight correction from the area of 1.3730/1.3750, but the downward interest will still remain in the market.
Sell positions:
This will be considered if the price is held below the level of 1.3730, towards 1.3670.
Buy positions:
This will be considered if the price is held above the level of 1.3770, towards the range of 1.3785/1.3800.
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.
Things to remember:
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.
