06.09.202110:30 Forex Analysis & Reviews: Trading plan for starters of EUR/USD and GBP/USD on September 6, 2021

Here are the details of the economic calendar for Sept 3:

As expected, the United States Department of Labor report was worse than forecasted. It was expected that 750 thousand new jobs would be created in August, but instead only 235 thousand were created. As we can see, the discrepancy is very strong. The market was ready for such a turn, as the ADP employment report on Wednesday indicated worse indicators, which was confirmed in the report.

The market's reaction to the statistical data was in terms of local weakening of dollar positions, but everything returned to its previous levels at the end of the day.

Analysis of trading charts from September 3:

The EUR/USD pair found resistance at 1.1880/1.1905, which led to a reduction in the volume of long positions and a rebound.

This price area coincides with the local high of the previous correction from July 30. Traders were guided by the previous logical basis when considering sell positions.

The trading recommendation on September 3 is still relevant, where a retracement of the resistance area is considered.

As for the GBP/USD pair, the price rebounded from the resistance level of 1.3880.

Let's pay attention to the trading chart below. The price rebound from the level of 1.3880 repeats a regular basis from August 11 and 16. This allowed traders to plan ahead for short positions in the market.

* 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.

September 6 economic calendar:

There are no significant statistics for Europe and Britain today. At the same time, it is a holiday in the US in celebration of Labor Day. Due to this, trading volumes can be reduced, which will affect market volatility.

Trading plan for EUR/USD on September 6:

The resistance area of 1.1880/1.1905 is still relevant in the market, so many traders are considering a possible change in trading interests. A further increase in the volume of short positions is expected once the price is kept below the level of 1.1860. This may lead to the euro's gradual weakening towards the levels of 1.1840; 1.1800; 1.1720.

An alternative scenario of the market development will be relevant if the price is kept above the level of 1.1920.

Trading plan for GBP/USD on September 6:

Market participants actively won back the level of 1.3880 as a resistance. In the situation where the pound is still overbought, there is a chance of further weakening. If the confirmation of expectations is maintained, a movement towards the level of 1.3800 may occur.

* Overbought market – a situation that occurs after prices have risen too high and quickly, and prices are expected to fall soon. In our case, we are talking about the pound sterling, which has grown quite strongly.

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 candle in detail, you will see its characteristics of a relative period: the opening price, closing price, and 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 dynamic and it is important to understand what is happening.