09.08.202110:20 Forex Analysis & Reviews: Trading plan for starters of EUR/USD and GBP/USD on August 9, 2021

Here are the details of the economic calendar from August 6:

The United States Department of Labor released a report last Friday, which is considered one of the most important economic events.

Details of the report:

The unemployment rate in July declined from 5.9% to 5.4% against the forecast of 5.7%.

Outside agriculture, 943 thousand new jobs were created, while the forecast was 870 thousand.

Analyzing the details of the statistical data, the report came out many times better than the forecast. The labor market is recovering faster than experts' expectations, which leads to a revaluation of dollar positions.

Analysis of trading charts from August 6:

During a sharp decline, the EUR/USD pair reached the base on July 21, that is, the level of 1.1752, where there was a reduction in the volume of short positions.

The support level of 1.1750 leads to a slowdown in the downward course and a pullback.

The trading plan on August 6 considered the scenario of a downward development, where the quote approached the forecasted level of 1.1750.

The GBP/USD pair completed a four-day fluctuation in the range of 1.3900-1.4000, breaking through its lower limit, which increased the chances of sellers for a subsequent decline.

The trading plan on August 6 considered the scenario of breaking through one or another border of the established range.

* Short positions or Short mean sell positions.

August 9 economic calendar:

Today, the United States will publish the number of open vacancies in the JOLTS labor market, which is expected to rise from 9,209 to 9,270 thousand in June.

* 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 based on surveys of employers.

Growth in the number of open vacancies is a positive signal for the labor market and the economy as a whole, but if unemployment does not increase at this moment, then the opposite effect will take place.

Trading plan for EUR/USD on August 9:

The support level of 1.1750 puts pressure on sellers, which leads to a technical pullback. In order to resume the downward course, the quote needs to stay below 1.1745 for a four-hour period, which will open the way towards the local low of March 31, namely the level of 1.1704.

Trading recommendations

Market participants will consider an upward movement if the price rebounds from the support point of 1.1750, where a movement in the direction of 1.1800 is not excluded.

A downward movement will be relevant if the price is kept below the level of 1.1745, opening the way towards the level of 1.1704.

Trading plan for GBP/USD on August 9:

The breakdown of the level of 1.3900 led to a decline, but the reverse movement is visible, which allows the formation of a technical breakdown-pullback pattern.

The breakdown-pullback pattern is a technical movement when a quote returns to a previously broken level to further strengthen from it in the direction of the breakdown.

If the expectations coincide, the quote will strengthen the downward interest in the area of the 1.3900 level. The least risky entry point for short positions is located below 1.3850, towards the range of 1.3800-1.3785.

An alternative scenario for the price development will be considered if the quote is kept above the level of 1.3910 on the H4 time frame, which allows the resumption of the 1.3900/1.4000 amplitude.

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.

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 because the market is constantly dynamics and it is important to understand what is happening on it.