24.06.202111:27 Forex Analysis & Reviews: Trading recommendations for starters of EUR/USD and GBP/USD on June 24, 2021

Here are the details of the economic calendar from June 23:

The business activity data were published in all major regions at once yesterday – in the EU, Britain, and the United States.

Before proceeding to statistical data, let's analyze what kind of indicator this is.

The index of business activity in the manufacturing sector, as well as in the service sector, reflects the activity of purchasing managers and changes in business conditions in this industry. The growth of the index leads to a strengthening of the economy and an increase in the value of the national currency, while the decline is considered a negative factor, which leads to a weakening of the national currency.

The Eurozone was the first to report data on business activity, where the index in the manufacturing sector for June remained at the level of 63.1 points, with a forecasted decline to 62.1 points.

The index of business activity in the European services sector may surge from 55.2 to 58.0 points with a forecast of 57.6 points.

The EU data turned out to be better than expected, which led to the euro's further strengthening in the given time frame.

The United Kingdom came in second in terms of indices, where the index fell from 65.6 points to 65.2 points in the manufacturing sector, and from 62.9 to 61.7, with a forecast of 62.8 points in the services sector.

The pound's value fell when the data was published.

The United States finished it off, where the index of business activity in the manufacturing sector rose from 62.1 points to 62.6 points, with a forecast of its decline to 61.4 points. In addition, the index of business activity in the services sector should have remained unchanged, but it declined from 70.4 points to 64.8 points instead.

The service sector plunged very much, but speculators were not confused by this, as if they only grabbed data on the manufacturing sector.

Analysis of trading charts from June 23:

The EUR/USD pair failed to change the amplitude cycle within the lower border of the psychological area of 1.1950/1.2000/1.2150. In simple words, market participants slowed down the corrective course, where it was replaced by stagnation within the 40-point range.

The GBP/USD pair has moved from correction to consolidation, where the values of 1.3950/1.4000 serve as the borders of amplitude. It is worth paying attention to how much volatility has fallen, as this indicates that there is a regrouping of trading forces in the market.

Trading recommendation for EUR/USD and GBP/USD on June 24, 2021

In terms of the economic calendar, today's primary event is the scheduled meeting of the Bank of England, during which no change in the interest rate or monetary policy parameters is expected. The event is classified as particularly important, even though no changes are planned, but in this case, everyone will follow the comments of the regulator.

In simple terms, many central banks may revise their strategies after the Fed's meeting, which is what speculators are hoping for.

Results of the Bank of England meeting - 11:00 Universal time

The weekly data on claims for America's unemployment benefits will be released during the US trading session, which is expected to decline.

• The volume of initial applications for benefits is expected to fall from 412 thousand to 380 thousand.
• The volume of repeated applications for benefits is expected to fall from 3,518 thousand to 3,460 thousand.

Applications reflect the number of citizens who are currently unemployed and receiving unemployment benefits. This indicator is considered to be the state of the labor market, where the growth of the indicator negatively affects the level of consumption and economic growth. The reduction of applications for benefits has a positive effect on the labor market.

Looking at the EUR/USD trading chart, one can see that there is still a correction in the market, but it is at the stage of slowing down, which can lead to a reversal if the price is kept below the level of 1.1905.

An alternative scenario of the market development will be considered if the price is held above 1.2010, which will lead to a prolongation of the correction.

As for the trading chart of the GBP/USD, it shows that the stagnation process has led to a cumulative effect, which will lead to a natural acceleration. The best trading tactic is considered to be the method of holding the price relative to the borders of stagnation, which will make it possible to enter the market at the most appropriate moment.

To put it simply, we should focus on the price level of 1.3920 when selling and on the level of 1.4010 when buying.