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Here are the details of the economic calendar from July 12:
Yesterday's economic calendar was empty in terms of important statistics from Europe, Britain, and the United States. This is considered normal for Monday.
The EUR/USD pair rushed towards the local highs from July 1, 5, and 6 during the technical correction from the pivot point of 1.3800, where a reduction in the volume of long positions and price stagnation were observed.
To simply put it, the correction slowed down its formation, and sellers partially returned to the market, who took advantage of the local highs on July 1, 5, and 6 as a resistance area of 1.1880/1.1895.
The trading recommendation on July 12 considered the possibility of a price rebound from the resistance area (1.1880/1.1895), which is still considered a relevant tactic.
* A technical correction is when a quote changes the direction of the market on a short-term basis without the influence of fundamental analysis on it. This phenomenon often occurs in the market at the time of a long-term strengthening or weakening of the quotation.
Long positions or Long means buy positions.* Price stagnation is when there is no upward and downward movement in the market, and the quote takes the form of a sideways move with a fairly narrow amplitude.
The GBP/USD pair continued to consider the area of 1.3900 as resistance, reducing the volume of long positions, which led to a stagnation-pullback.
The trading recommendation on July 12 considered the possibility of a price rebound from the resistance area, which partially happened in the market during the period 2:00-11:00 UTC+00. It should be noted that trading with the resistance level is still in the active phase.
* The resistance level is the so-called price level, from which the quote can slow down or stop the upward movement. The principle of constructing this level is to reduce the price stop points on the history of the chart, where the price reversal in the market has already occurred earlier.
July 13 economic calendar:
The United States will publish its inflation data today, where consumer prices are expected to decline from 5.0% to 4.9%.
* The consumer price index is prepared by the US Bureau of Labor Statistics, which determines the change in prices of the selected basket of goods and services for a given period. This indicator is considered a key indicator for assessing inflation. From the point of view of fundamental analysis, an increase in inflation is a positive signal for the national currency, but when consumer prices rise faster than forecasts, this is considered not the best signal.
Here, a decline in consumer prices is predicted, which may lead to a decline in inflationary risks, and as a result, to the strengthening of the US dollar.
It may seem illogical that a contradiction to fundamental analysis leads to the opposite effect, but in the case of ultra-high inflation, its decline just gives the opposite effect.
12:30 Universal time - US inflation
Trading recommendation for EUR/USD on July 13, 2021
Looking at the EUR/USD trading chart, one can see the amplitude price movement within the resistance area of 1.1880/1.1895, as if there is a cumulative effect in the market before a new round of acceleration.
Sell signal
Traders will consider this if the price is kept below the level of 1.1835, which will open the way to the support level of 1.1800.
Buy signal
Traders will consider this if the resistance area of 1.1880/1.1895 is broken, which will lead to further formation of a correction. In this case, there is no need to rush. We consider buying positions above the level of 1.1900, with a prospect of 1.1950-1.2000.
* The resistance level is the so-called price level, from which the quote can slow down or stop the upward movement. The principle of constructing this level is to reduce the price stop points on the history of the chart, where the price reversal in the market has already occurred earlier.
* The accumulation process is a price fluctuation in a closed amplitude, where at the moment of a breakdown of a particular stagnation border, a local acceleration in the direction of breakdown often occurs.
Trading recommendation for GBP/USD on July 13, 2021
As for the trading chart of the GBP/USD, it shows the price movement within the deviation of the level of 1.3900, where market participants still view it as resistance.
Sell signal
They have been considered by traders since yesterday, where sell positions may have already been opened. If no deals have been opened, it is advised to wait for the price to hold below the level of 1.3835. The prospective target is 1.3785-1.3750.
Buy signal
It is considered by traders as a prolongation of the existing correction, but entering the market will be possible after the price holds above the level of 1.3950, with a prospective target of 1.4000.
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 individual candle in detail, you will see its characteristics of a relative time period: the opening price, the closing price, the 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.
Things to remember:
Golden Rule: It is necessary to figure out what you are dealing with before starting to trade with real money. Learning to trade is so important for a novice trader since the market will exist tomorrow, next week, next year, and the next decade.
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