Details of the economic calendar from May 12
UK GDP data for the first quarter slightly upset investors, even though the economic calendar growth rate increased from 6.6% to 8.7%. The reason for the indignation is the divergence of expectations—GDP growth was predicted to reach 9.0%.
At the same time, industrial production in the UK grew less than expected, which also became a catalyst for the negative on the pound sterling.
During the US trading session, weekly data on jobless claims were published, which recorded a decrease in the total volume.
Statistics details:
The volume of continuing claims for benefits decreased from 1.387 million to 1.343 million.
The volume of initial claims for benefits increased from 202,000 to 203,000.
Analysis of trading charts from May 12
The EURUSD currency pair completed the construction of a two-week flat of 1.0500/1.0600 by breaking its lower limit. This caused high speculative interest, which was accompanied by a sharp increase in the volume of short positions. As a result, the euro lost about 160 points.
The GBPUSD currency pair has slowed down the downward move around the value of 1.2165. This led to a reduction in the volume of short positions and a pullback towards the previously passed level of 1.2250. The subsequent price fluctuation is similar to the process of accumulation of trading forces, which can serve as a lever for new speculation in the market.
Economic calendar for May 13
Today the macroeconomic calendar is practically empty. The only thing you can pay attention to is industrial production in the EU, where a decline is predicted.
Time targeting
The volume of industrial production in the EU - 09:00 UTC
Trading plan for EUR/USD on May 13
In this situation, the convergence of prices with the local bottom of 2016 may well lead to a slowdown in the downward cycle. This will lead to a slowdown or a full-length pullback.
An alternative development scenario considers the continuation of the inertial course in the market, where the signals about the oversold euro will be ignored by traders. In this case, holding the price below 1.0325 in a four-hour period will restart short positions.
Trading plan for GBP/USD on May 13
If the current stagnation serves as a regrouping of trade forces, then a local acceleration may soon occur. In this case, the optimal trading tactic is an outgoing momentum relative to the boundaries of stagnation.
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 candle in detail, you will see its characteristics of a relative period: the opening price, closing price, and 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.
