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Here are the details of the economic calendar from July 1:
In terms of the economic calendar, Europe released its final unemployment data for May, where the previous figure was revised upward from 8.0% to 8.1%, but the current data came out better than expected - a decline to 7.9 %.
* The unemployment rate is the ratio of the number of unemployed to the number of workers [the sum of employed and unemployed], defined as a percentage. This indicator is prepared by the Statistical Service of the European Union (Eurostat).
The divergence of expectations on the unemployment rate led to an increase in the value of the Euro currency during the publication of statistical data. The most striking price movement is observed for 15 minutes.
The weekly data on applications for unemployment benefits in the US was published at 12:30 pm Universal time (June 1), where the indicators were not as bad as they might seem.
* Applications for unemployment benefits reflect the number of currently unemployed citizens and those receiving unemployment benefits. This indicator is considered to be the state of the labor market, where the growth of the indicator negatively affects the level of consumption and economic growth. The reduction of applications for benefits has a positive effect on the labor market.
In simple terms, the decline in the number of initial applications prevailed in the speculators' decision to take dollar positions in the market.
Analysis of trading charts from July 1:
The EUR/USD pair managed to locally break through the base on June 21 in the face of the level of 1.1847, but there was a reduction in the volume of short positions in this area based on the results of the day, which led to a slowdown and a price rebound.
* Short positions or Short mean selling positions in anticipation of a decline in the value of the asset.
In our case, we mean the reduction of positions to sell the euro.
The GBP/USD pair managed to break through the base of the recent corrective movement in the face of the price level of 1.3785. As a result, the rate of the pound fell to the level of 1.3751.
The bearish interest is clearly visible, which may contribute to increasing the volume of short positions in the market in the long term.
* Bears are the name of market participants who play for the reduction of currency rates, which is generally accepted in the exchange environment.
Trading recommendation for EUR/USD and GBP/USD on July 2, 2021
Today, the United States Department of Labor will publish its report, which is considered to be one of the most important economic events in the finance world.
As can be seen from the details of statistical expectations, experts predict a further recovery process, and this may lead to an increase in the US dollar if expectations coincide.
Looking at the EUR/USD trading chart, one can see the accumulation process of trading forces in the area of the base of June 21, where the downward interest still takes place.
By focusing on the short-term outlook, it is possible to enter sell positions below the level of 1.1835, in the direction of 1.1800.
But taking into account the most significant price changes, it is advised to wait for the price to hold below the level of 1.1800 in the H4 time frame, which will open the way towards the level of 1.1700.
* The accumulation process is a price fluctuation in a closed amplitude, where a local acceleration in the direction of the breakdown of a particular stagnation border often occurs.
* Short term is a period of time close to the future. Traders in the currency market call this intraday trading.
As for the trading chart of the GBP/USD, it shows that there is a steady movement below the base on June 21, which may lead to an increase in the volume of short positions in the near future.
The price being kept below the level of 1.3750 is likely to become sellers' starting point towards the range of 1.3700-1.3670.
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