11.03.202110:31 Forex Analysis & Reviews: Trading recommendations for starters of EUR/USD and GBP/USD on March 11, 2021

The position of the US dollar slightly weakened yesterday, which caused the dollar index (DXY) to decline to the level of 91.76.

It is fair to note that the dollar index (DXY) is the ratio of the US dollar (USD) to a basket of six currencies, which means that it is a weighted average of the US dollar against the euro (EUR), Japanese yen (JPY), pound sterling (GBP), Canadian dollar (CAD), Swedish krona (SEK) and Swiss franc (CHF).

In this case, the decline in the DXY index leads to a weakening of the US dollar relative to its competitors.

As for the economic calendar, the United States published its inflation data, which has a growth forecast from 1.4% to 1.6%, but in reality, a stronger growth was observed, that is, to 1.7%. This inflation growth is a positive factor that pushes the national currency up. However, investors were concerned of such a rapid growth, as it could lead to the Fed's tightening of the monetary policy.

The value of the US dollar strengthened locally by the time inflation data was released.

What happened on the trading chart?

The EUR/USD pair continues to pullback from the variable pivot point 1.1835. As a result, the quote approached the lower border of the psychological area of 1.1950/1.2000/1.2050.

The GBP/USD pair is in the pullback stage from the pivot point of 1.3785, where the market participants moved to the lower border of the psychological area of 1.3950/1.4000/1.4050.

Trading recommendations of EUR/USD and GBP/USD on March 11, 2021

Today, the results of the European Central Bank meeting will be known, whose interest rate is expected to remain unchanged. Investors are more interested in Christine Lagarde's press conference, where she may talk about the topic of consumer activity, since things are not going smoothly as the regulator would like.

In this case, it is hard to make a prediction. Therefore, one should carefully monitor the press conference and its results, where there will be a clear subsequent speculative move on the market depending on the regulator's rhetoric.

ECB meeting results - 12:45 Universal time

Press conference - 13:30 Universal time

This afternoon, the US is expected to publish its weekly data on claims for unemployment benefits. If there is an improvement in the labor market report, this will lead to economic growth, which may encourage the national currency to rise.

• Volume of initial applications for benefits is expected to rise from 745 thousand to 725 thousand.
• Volume of repeated applications for benefits is expected to fall from 4,295 thousand to 4,220 thousand.

US applications for benefits - 13:30 Universal time

Considering the current EUR/USD trading chart, the quote was seen following the deviation of 1.1950, which coincides with the pivot point on February 5. We can assume that the quote may move into a deceleration stage, followed by a price rebound along a downward course. However, it is worth considering that the conditional resistance area, from which market participants will interact, has a range of 100 points.

As for the GBP/USD trading chart, one can observe that the process of interaction is built in a similar way in the area of the psychological level of 1.4000, from which the principle of rebound or breakdown can be worked out. Alternatively, it is worth seeing the price hold above the level of 1.4050 in the H4 time frame.