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Here are the details of the economic calendar from August 16:
Yesterday, any significant statistics from Europe, Britain, and the United States were not observed.
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 that day.
Analysis of trading charts from August 16:
The EUR/USD pair ended the correction from this year's base in the area of the resistance level of 1.1800. This led to a reduction in the volume of long positions and a price reversal.
It is worth noting that a downward trend has been developing in the market since the beginning of June. The retracement 1.1700 ----> 1.1800 is part of the downward trend structure. Thus, it is still relevant for the market to consider the downward price development.
The trading plan on August 16 considered the scenario of the price rebound at the level of 1.1800, indicating a subsequent decline towards the pivot point of 1.1700.
The GBP/USD pair follows the fifth day within the lateral amplitude of 1.3800/1.3885. A consistent rebound from the set borders indicates the process of accumulation of trading forces, which may eventually lead to a new round of acceleration.
It can be noted that there is a downward move in the market from the area of the psychological level 1.4000. The current sideways movement within the borders of 1.3800/1.3885 is only a temporary stop.
The trading plan on August 16 considered the scenario of a downward movement in the direction of the lower border of the side amplitude. The strategy was focused on the price rebound from one or another border of the amplitude of 1.3800/1.3885.
* The resistance level is the so-called price level, from which the quote can slow down or stop the upward movement. The principle of constructing this level is to reduce the price stop points on the history of the chart, where the price reversal in the market has already occurred earlier.
* Psychological levels are round values (1.2000, 1.3000, 1.4000,1.5000, etc.) that serve as key coordinates in the market, which traders pay special attention to. These levels are often used as support or resistance.
* The accumulation process is a price fluctuation in a closed amplitude, where at the moment of the breakdown of a particular stagnation border, a local acceleration in the direction of breakdown often occurs.
Short positions or Short means sell positions. Long positions or Long means buy positions.
August 17 economic calendar:
Today, the UK has already released its labor market data. The unemployment rate declined from 4.8% to 4.7% and employment rose by 95 thousand. The data on the labor market is remarkable and only the figures for applications for unemployment benefits were disappointing, which fell by only 7.8 thousand while waiting for a decrease of 180 thousand.
Market participants were upset by the data on applications for benefits. This led to ignoring all other indicators and eventually resulting in a decline in the value of the pound sterling.
At 9:00 Universal time, the second estimate of the Euro zone's GDP in the second quarter will be published, which will remain ignored, since it should completely coincide with the first estimate of 13.7%.
During the US trading session, retail sales data is expected to be published. The growth rate of which may slow down from 18.0% to 11.5%. At the same time, the growth rate of industrial production should slow down from 9.8% to 7.2%.
Trading plan for EUR/USD on August 17:
Market participants are considering a scenario of price recovery relative to the correction course, where the resistance level of 1.1800 is still being won back by the market.
The subsequent growth of the volume of short positions is possible if the price is kept below the level of 1.1750, while the development of a downward course is possible to the level of 1.1700.
An alternative scenario of market development will be considered if the price returns above the level of 1.1780, which may lead to another attempt to break through the resistance level.
Trading plan for GBP/USD on August 17:
The sideways fluctuation of 1.3800/1.3885 eventually led to the breakdown of the lower border, which increases the chances of a subsequent decline in the market. In this situation, one should make sure that the sellers intend to keep the price below the level of 1.3785 in the H4 interval. If the signal is confirmed, a prolongation of the downward movement towards 1.3750-1.3640 may occur.
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.
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