Details of the economic calendar on February 24
The U.S. Department of Commerce reported a 1.8% month-on-month increase in personal spending in January, while income rose 0.6%. These figures exceeded the average expectations of analysts, who predicted a 1.3% increase in spending and a 1.0% increase in income.
Meanwhile, the core price index, which measures personal consumption in the U.S. excluding energy and food (core PCE), was 0.6%, exceeding expectations by 0.4%.
According to a report released by the Census Bureau of the Department of Commerce, new home sales in January rose 7.2% from a revised December reading to 670,000. The increase was higher than analysts expected, who forecasted sales to rise to 620,000 based on the initially published figure of 616,000. Note that the December figure was also adjusted to 625,000.
Recall that new home sales data is an important indicator of the state of the real estate market and the economy as a whole.
Analysis of trading charts from February 24
Over the past week, the euro fell by about 1.4% against the U.S. dollar, extending the corrective cycle from the maximum point of the medium-term upward trend.
The GBPUSD currency pair ended last week below 1.1950, which indicates a dominant downward trend among market participants.
Economic calendar for February 27
Data on January Durable Goods Orders in the United States will be released today, which is expected to decline. This is a negative factor for the economy.
EUR/USD trading plan for February 27
The 1.0500 support level in the path of euro sellers could put pressure on short positions, creating a technical stagnation-pullback. However, if the price holds below this level throughout the day, it could lead to a drastic change that may affect the euro's medium-term upward trend.
GBP/USD trading plan for February 27
If the pound sterling stays steadily below 1.1950, it may lead to an increase in short positions in the market, causing a prolongation of the downward trend, which is moving towards the local low of January at 1.1840. However, note that radical changes are possible only if the price stays below 1.1750. In this case, we can expect a change in the medium-term trend from uptrend to downtrend. Until then, the downtrend cycle may finish its formation and switch to the stage-by-stage recovery process of the pound sterling's value.
What's on the charts
The candlestick chart type is white and black graphic rectangles with lines above and below. With a detailed analysis of each individual candle, you can see its characteristics relative to a particular time frame: opening price, closing price, intraday high and low.
Horizontal levels are price coordinates, relative to which a price may stop or reverse its trajectory. In the market, these levels are called support and resistance.
Circles and rectangles are highlighted examples where the price reversed in history. This color highlighting indicates horizontal lines that may put pressure on the asset's price in the future.
The up/down arrows are landmarks of the possible price direction in the future.
