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The market did not show enough activity yesterday, which led to only one thing – stagnation.
The economic calendar included the final data on US inflation, where the forecasted growth was from 1.4% to 1.5%. However, the data was revised downward by 1.4% ---> 1.3% in the end, but the final inflation rate still came out at 1.4%. To put it simply, nothing happened, so the market remained in place.
What happened on the trading chart?
The EUR/USD pair found a resistance at 1.2130/1.2150 after sharply rising from the pivot point of 1.1950. It was followed by a slowdown and eventually, a stagnation at 1.2112/1.2144. The stop of the upward movement is a positive signal for the resumption of the main corrective movement from the high of the medium-term trend, but such a narrow amplitude lasting more than a day can lead to a cumulative effect and local acceleration in the market.
The GBP/USD pair continues to update the high of the mid-term trend, where the quote managed to reach the coordinates of 1.3865 this time, without affecting the upward interest. It can be recalled that the pound has a very high level of overbought. Thus, a small impact on the market is enough for a technical correction to occur, but speculators controls the market, which leads to unjustified growth.
Trading recommendations on EUR/USD and GBP/USD for February 11, 2021
The weekly data on claims for unemployment benefits in the US, whose volume will likely decline, are expected to be published today.
USA 13:30 Universal time - Applications for benefits
Analyzing the current trading chart of EUR/USD, the quote is seen still moving within the narrow range of 1.2112/1.2144, as if preparing market participants for new price surges. In this case, the primary trading tactics are considered to be the method of breaking through a particular border of the range and local impulse.
- Buy a pair is recommended if the price is kept above the level of 1.2155, with the prospect of moving to 1.2185.
- Selling a pair is recommended if the price is kept below the level of 1.2110, with the prospect of moving to 1.2090-1.2070.
As for the current trading chart of the GBP/USD, one can see that the quote is still at the high of the mid-term trend. The breakdown of the current high will push the pound further upwards, namely to the range of 1.2900-1.2950.
When buying, it is suggested to get ready in changing the position rapidly if a technical correction occurs.
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