Details of the economic calendar from July 11
Monday was traditionally accompanied by an empty macroeconomic calendar. Important statistics in Europe, the UK, and the United States were not published.
Analysis of trading charts from July 11
The EURUSD currency pair, ignoring the oversold signal, continued to decline, indicating a high interest of speculators in the current market situation.
The GBPUSD currency pair, following the euro, resumed its decline. The vicious cycle along the psychologically important level of 1.2000 was interrupted, and the market saw an increase in the volume of short positions. As a result, the pound sterling has updated the local low of the downward trend.
Economic calendar for July 12
Tuesday is not much different from Monday in terms of the macroeconomic calendar. Important statistics in Europe, the UK, and the United States are not expected. Thus, traders have to keep track of the information flow and work based on the technical picture.
Trading plan for EUR/USD on July 12
Traders are now watching a historical event: the quote has come close to parity with the intention of breaking it. Holding the price below it can lead to a local acceleration of the downward cycle. After that, a sharp change in trading interest is possible, caused by an increase in the volume of long positions, which will provoke a technical pullback in the market. Variable and high volatility will remain in the market indefinitely.
Trading plan for GBP/USD on July 12
In this situation, everything points to a subsequent downward move towards the values of 1.1700–1.1500. In the work, it is worth considering that at this time, the EURUSD pair is the leading pair, and GBPUSD is the slave pair. Thus, in the event of a sharp change in trading interests in the euro, through a positive correlation, it will pull the pound sterling along with it.
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.
