Here are the details of the economic calendar for May 27:
The economic calendar yesterday was extremely empty, as important statistics from the UK, Europe, and the United States were not published. The only thing that could be drawn attention was that the French government intends to impose additional restrictions on passengers arriving from the UK to resist a new strain of coronavirus.
The news is negative.
Analysis of trading charts from May 26
The EUR/USD pair failed to break through the resistance level of 1.2250 on the first attempt, which ultimately led to a slowdown in the upward cycle and as a result, a pullback towards the support area of 1.2160/1.2180.
Trading recommendations from May 26 considered the overbought status and the effect of slowing down along the 1.2250 coordinate, which indicated a possible surge in activity at the end of the stagnation stage.
The GBP/USD pair continued to move within the borders of the indicated sideways channel 1.4100/1.4240, heading towards the lower border.
Trading recommendations from May 25-26 considered a closed cycle of the amplitude 1.4100/1.4224, suggesting that the trading method of breaking a particular border should be used.
Trading recommendation for EUR/USD and GBP/USD on May 27, 2021
The data on US GDP for the first quarter will be published today, where economic growth is expected from 6.4% to 6.5%.
12:30 Universal time - US GDP
Along with the GDP, America will release its data on applications for unemployment benefits, which is expected to decline.
Details:
- The volume of initial applications for benefits may decline from 444 thousand to 425 thousand.
- The volume of repeated applications for benefits may decline from 3,751 thousand to 3,680 thousand.
Applications reflect the number of citizens who are not currently working and receiving unemployment benefits. This indicator is considered the state of the labor market, where the growth of the indicator negatively affects the level of consumption and economic growth.
To simply put it, an increase in the number of applications leads to a weakening of the national currency, while a decrease leads to strengthening.
Looking at the EUR/USD trading chart, a price slowdown within the area of 1.216 1.2180 is seen, which leads to a pullback. In this case, trading on the rebound is still relevant, so it is impossible to exclude from the analysis a possible repetition of the regular basis of May 19 and 24.
As for the trading chart of the GBP/USD, it shows that n the lower border of the side channel 1.4100/1.4240 was pierced during the Asian session, but it is not yet confirmed.
Currently, a rebound from the level of 1.4100 towards the range 1.4170-1.4230 is still considered, but an alternative scenario will consider a breakdown of the sideways channel if the price holds below the level of 1.4090 in the H4 time frame.
In this case, trading is carried out both for a rebound and a breakdown.
