16.03.202111:22 Forex Analysis & Reviews: Trading recommendations for starters of EUR/USD, GBP/USD and DXY on March 16, 2021

The US dollar had a characteristic restraint towards buyers and sellers. This is evident on the dollar index (DXY) chart, where an amplitude fluctuation is observed in the narrow limits of 91.75/91.95.

It can be recalled that the Dollar Index (DXY) is the ratio of the US dollar (USD) to a basket of six currencies and is a weighted average of the dollar against the Euro (EUR), Japanese yen (JPY), British pound (GBP), Canadian dollar (CAD) , Swedish krona (SEK) and Swiss franc (CHF).

The index serves as a compass for the US dollar in the market, which reflects its interest relative to its competitors.

In terms of the economic calendar, there are no statistics worth noting. Traders who are mostly available during the first day of the week already know that Monday is usually empty when it comes to the economic calendar.

What happened on the trading chart yesterday?

The EUR/USD pair failed to show proper activity in the market. All the existing movement was similar to the cumulative process around the amplitude range of 1.1910/1.1940. It is fair to note that the pivot point of 1.1910 coincides with the base of the candle from March 12, which means that there is a regular basis connected to these coordinates.

The GBP/USD pair managed to break last Friday's low, showing local downward interest. However, market participants failed to maintain their positions under the 1.3850 mark.

Trading recommendations for EUR/USD and GBP/USD on March 16

Today, Italy and France will release their final inflation data, but traders are not interested in the data on individual EU countries. In this case, the market will hardly react.

• 7:45 Universal time: France's inflation (y/y): Previous: 0.6% ---> Forecast: 0.4%
• 9:00 Universal time: Italy's inflation (y/y): Previous: 0.4% ---> Forecast: 0.5%

During the US trading session, the main statistics will be published. Here, US retail sales data is forecasted to slow down from 7.4% to 5.5%, which is bad for the national currency. Following this data, the industrial production in the US will also be released, where an increase of 0.9% should replace the decline.

The growth in industrial production will positively affect the national currency, but this might be ignored given the weak retail sales.

• 12:30 Universal time: Retail Sales (Feb)
• 13:15 Universal time: Industrial production (Feb)

Looking at the EUR/USD pair trading chart, it can be seen that the quote continues to follow the limits of the accumulative process of 1.1910/1.1940. In this case, the method of breaking through a particular accumulation limit will be considered as the main tactic, working on the impulse.

• Buy positions on a pair will be considered above the level of 1.1945, with the target of moving to 1.1960.
• Sell positions on a pair will be considered below the level of 1.1910, with the target of moving to 1.1880.

As for the GBP/USD pair trading chart, it shows that sellers continue to push the pound's price down. If the price holds below the level of 1.3850 in the H4 time frame, it may further decline towards 1.3800.