Details of the economic calendar for September 7
The European statistical agency Eurostat report on the third final estimate of GDP in the second quarter showed an increase of 4.1% in annual terms and 0.8%. The actual data came out better than the preliminary estimate, but this did not help the euro at the time of publication.
Analysis of trading charts from September 7
The EURUSD currency pair tried to overcome the control value of 0.9900 for three days in a row, but the market participants failed to stay below it in the daily period. This resulted in a price rebound, which led to a reverse move towards the parity level.
The GBPUSD currency pair did not just update the 2020 low (1.1410), the quote for a while turned out to be at the levels of 1985 . This historical event was instantly won back by speculators in the form of a technical pullback. As a result, the rate of the pound sterling returned above 1.1500.
Economic calendar for September 8
The main event of Thursday, and the whole week, will be the meeting of the European Central Bank (ECB). Without any doubt, the market is waiting for the regulator to raise the interest rate from 0.50% to 1.25%. This event has already been taken into account in the market but will still attract the proper attention of speculators, because a change in the rate by 75 basis points at once is a historical event.
Thus, the euro can locally receive support in the market from buyers. After that, all attention will be focused on the subsequent press conference, where specifics are expected from the head of the ECB, Christine Lagarde. The ECB's comments will indicate the subsequent price move in the market.
Time targeting:
Results of the ECB meeting – 12:15 UTC
ECB press conference – 12:45 UTC
ECB President Christine Lagarde speech – 14:15 UTC
Trading plan for EUR/USD on September 8
Despite the possible overheating of long positions, in short-term time periods, speculators can still send the euro up due to the results of the ECB meeting. In this case, local price movement above 1.0050 is not excluded.
In the work, it is worth considering that speculative hype is not the basis for a stable price movement. In the event of a minimal change in the mood of speculators, mass fixation of long positions is possible, which will lead to a reverse price move.
Trading plan for GBP/USD on September 8
In this situation, there is still a signal that the pound is oversold, which, with rational technical analysis, could lead to the formation of a full-size correction. Everything would be exactly like this if there were no information and news flow, as well as other factors of pressure on the quote.
Today there will be a lot of envy from the behavior of speculators in the euro market since, in this case, the European currency will be considered the leading one. Thus, synchronous price fluctuations will occur through a positive correlation between trading instruments.
What is shown 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.
