12.05.202109:45 Forex Analysis & Reviews: Trading recommendations for starters of EUR/USD and GBP/USD on May 12, 2021

Here's the details of the economic calendar for May 11:

The economic calendar was almost empty again during the last trading day. The only thing that was worth paying attention to was the publication of data on the number of open vacancies in the US labor market (JOLTS) for March. This data came out better than expected, showing growth: Pre. 7,526 thousand --- > Prog. 7,500 thousand ----> 8,123 thousand.

The market, even taking into account the divergence of expectations, did not react, as if traders were in a waiting mode, just focusing on the publication of statistical indicators on May 12.

Analysis of trading charts from May 11:

Yesterday, the EUR/USD pair continued to move in the previously established range of 1.2115/1.2180, while not showing high activity. It was possible to open trade deals within the price range, but it is assumed that not all traders were interested in this idea due to low profitability. Most of the market participants were focused on the momentum coming from the range, which did not happen in the market.

In turn, the British currency failed to break through the stagnation stage, which led to an even more aggravated accumulation process in the borders of 1.4100/1.4165.

There is no reason to open trade deals within the accumulation process, since the scale of the amplitude is low, and the main impulse will come by the time a particular stagnation border is broken.

Trading recommendations of EUR/USD and GBP/USD on May 12, 2021

Today, Britain has already published its preliminary GDP for the first quarter, where the economy continues to show a slowdown, confirming the previous estimate of -6.1% (y/y). In turn, the country's industrial production shows growth by 1.8% in March.

The pound's reaction to the flow of statistical data on Britain reflects the growth, since the indicators did not decline.

Now, we expect the publication of data on European industrial production, where an impressive growth of + 11.7% in the period of March is expected. The data can locally support the Euro.

EU 9:00 Universal time - Industrial production.

During the US trading session, American inflation data will be published, where the growth of consumer prices is forecasted to accelerate from 2.6% to 3.6%.

An increase in inflation is a positive signal for the national currency, but investors are currently worried about such a rapid inflation growth. Therefore, it is quite difficult to predict how speculators will react to it.

USA 12:30 Universal time - Inflation

Looking at the EUR/USD trading chart, it can be seen that there was a downward interest during the Asian session, which brought the quote to the area of the lower border of the sideways range 1.2115/1.2180. We can assume that the borders of the given amplitude are still relevant, but the main surge in activity will occur after the price is kept outside the control coordinates 1.2100/1.2180.

To put it simply, traders will continue to target outgoing impulse outside of the sideways range.

As for the GBP/USD trading chart, it shows that the stagnation at 1.4105/1.4165 has a time frame of more than 24 hours, which garnered huge attention from speculators. The trading tactics are still focused on the outgoing impulse, moving on the principle of breaking through a particular stagnation border.