Past review of EUR/USD pair
The EUR/USD pair showed high activity yesterday, which resulted in breakdown of an important resistance level.
What was published on the economic calendar?
There was almost no flow of statistical data. In Europe, Italy's inflation data was only published, where a further decline was recorded. However, the market is not interested in considering data for individual EU countries, especially for Italy.
In turn, the United States released pending sales data in the real estate market for October, where it recorded a slowdown in growth. The news did not affect the dollar positions in any way, since officials at the US White House almost simultaneously announced the early release of COVID-19 vaccine, which had a positive effect on the US dollar, reflected in its strengthening.
What happened on the trading chart?
The quote initially followed the previously set upward direction. This resulted in a breakdown of an important resistance level, where a stop and a reversal of the quote occurred. To simply put it, the volume of buy positions for the euro sharply declined, while the volume of dollar positions increased due to the positive news on the vaccine.
Yesterday's recommendation regarding the price rebound from the level of 1.2000 coincided, which made it possible for traders to earn about 70 points.
Past review of GBP/USD pair
Yesterday, the pound only showed local activity without significant market changes.
What was published on the economic calendar?
The UK lending market data was released, where mortgage lending rose by 4.29 billion pounds. Last month, this figure rose by 4.8 billion pounds. The number of approved mortgage loans amounted to 97.53 thousand, against the expected 84.49 thousand, which is not bad. At the same time, consumer lending declined by £ 0.600 billion.
The data was not very great, so it is hard to say what influenced the pound's growth during that time. Perhaps, the technical outlook still affected the reversal.
The news about the distribution of the vaccine had a positive effect on the volume of positions on the dollar, but only locally.
What happened on the trading chart?
At the time the UK published its data, the quote approached the lower border of the side channel 1.3300/1.3400, where a rebound occurred. The reversal, which is in favor of the dollar's strengthening, took place simultaneously in the market at around 14:00 UTC+00. It should be noted that it was only a local activity and the borders of the side channel were never broken.
Trading recommendation for EUR/USD on December 1
In terms of the economic calendar, Eurozone's inflation data is expected today, where they predict a slowdown in the decline – from -0.3% to -0.2%. There is still a recession, but there is also a slight slowdown, which may benefit investors in the euro area.
10:00 Universal time - Inflation
From a technical viewpoint, the quote is seen to have found support in the area of 1.1920, after which a recovery process arose relative to yesterday's decline.
We can assume that the statistics for Europe (inflation) will locally support the euro in the event of a slowdown in the decline, but the resistance level of 1.2000 will continue to put pressure on buyers, which may affect the volume of positions on the euro in terms of reduction.
Trading recommendation for GBP/USD on December 1
Considering today's economic calendar, there was a publication on UK's house prices data, where they recorded an increase from 5.8% to 6.2%, which positively affected the value of the pound. After that, the publication of data on the business activity index in the manufacturing sector is expected, where there is a forecasted growth from 53.7 to 55.2, which may also have a positive effect on the pound.
In the afternoon, US data on the index of business activity in the manufacturing sector is expected, where the index is forecasted to rise from 53.4 to 56.7, which may already affect the strengthening of the dollar positions.
- UK 9:30 Universal time - Manufacturing PMI (Nov)
- USA 15:00 Universal time - Manufacturing PMI (Nov)
Technically, it can be seen how the quote has already approached the upper border of the side channel 1.3300/1.3400, which was expressed by an almost immediate price rebound. In the event of a regular repetition associated with the borders of the range, a reversal may occur, as has happened repeatedly.
An alternative scenario of the market development will be considered if the price is kept above the level of 1.3400 in the four-hour time frame, which can give confidence to buyers to further rise.
