09.07.202109:30 Forex Analysis & Reviews: Trading recommendations for starters of EUR/USD and GBP/USD on July 9, 2021

Here are the details of the economic calendar from July 8:

The United States published its weekly data on applications for unemployment benefits during the previous day, where there was a decline in their volume

• The volume of initial applications for benefits remained practically unchanged, with a slight growth from 371 thousand to 373 thousand.
• The volume of repeated applications for benefits fell from 3,484 thousand to 3,339 thousand.

* Applications for unemployment benefits reflect the number of currently unemployed citizens and those 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.

Analysis of trading charts from July 7:

Following the attempt of the EUR/USD pair to break through the support level of 1.1800, the volume of long positions increased again, which led to a rebound from the reference coordinate (1.1800). Expectations about the euro's depreciation are still taking place in the market, but before these important steps, traders should slightly regroup their trading forces, so we are watching the pullback stage.

The GBP/USD pair focused trading forces on the base area on July 2, where the bears are persistently trying to maintain a downward tact in the market, but following the price fluctuations yesterday, trading volumes are clearly lacking.

The trading recommendation on July 7 considered a downward development, but entering into the market was planned after holding the price below the level of 1.3730.

* Bears are market participants who are confident in its fall.

In our case, these are traders who are focused on selling.

July 9 economic calendar:

Today, the United Kingdom has already released its data on the volume of industrial production, where the growth rate has slowed from 27.5% to 20.6%. The indicators in annual terms still look very large due to the effect of a low base, so it is recommended to focus on the monthly terms, where an increase of 0.8% is observed, against the expected 1.2%.

The rate of recovery of the British industry is below expectations, so the pound sterling is under pressure.

* Industrial production reflects the change in production volumes at British enterprises in the reporting month compared to the same month of the previous year. The calculation of the indicator takes into account all branches of production: industry, mining, and processing of minerals, energy production, water resources, and waste management.

The low base effect is when the growth rate of an economic indicator is explained by its extremely low starting indicator.

To simply put it, the effect of lockdowns on the economy.

Trading recommendation for EUR/USD on July 9, 2021

Looking at the EUR/USD trading chart, one can see a pullback from the control level of 1.1800, while downward interest is still observed among traders.

Sell signal

In this case, the support level of 1.1800 is considered to be the pivot point. The quote must return below this level in order for the volume of short positions to grow. The prospect of a decline considers the weakening of the euro in the direction of the level of 1.1700.

Buy signal

In this case, the level of 1.1800 continues to play the role of support in the market, which leads to a prolongation of the pullback stage. Traders consider buy positions above the level of 1.1900, with the prospective movement to 1.1950.

* The support level is the so-called price level, from which the quote can slow down or stop the downward course. The principle of constructing this level is to reduce the points of support on the history of the chart, where the price reversal in the market has already occurred earlier.

It is worth considering that the support level cannot be eternal and constantly leads to a price reversal. Therefore, traders always have an alternative scenario for the development of the market, which considers the breakdown of this level.

Trading recommendation for GBP/USD on July 9, 2021

As for the trading chart of the GBP/USD, it shows that the quote continues to fluctuate within the base on July 2, as if waiting for the most suitable moment for a new round of acceleration.

Sell signal

It is considered by traders after holding the price below the level of 1.3730, which may give a new tact for a downward move towards the coordinate of 1.3670 in the future.

Buy signal

It is considered by traders as an alternative position, where the 1.3730 coordinate acts as support and leads to an increase in the volume of long positions. In this case, a movement above the level of 1.3800 may well open the way towards 1.3885.

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.

Things to remember:

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 since the market will exist tomorrow, next week, next year and the next decade.