18.07.201908:53 Forex Analysis & Reviews: Trading Plan for EUR / USD and GBP / USD pairs as of 07/18/2019

Of course, a rebound on the dollar was quite predictable and expected but always needs at least some reason. Yesterday, such an occasion was provided by European statistics. British statistics came out without any surprises, which fully coinciding with the forecasts and inflation in the United Kingdom remained unchanged. On the continent, everything was somewhat more interesting as inflation refused to stand still and moved forward, accelerating from 1.2% to 1.3%. Not only Mario Draghi has the actions of a heart balm but also on the hearts of all investors in the world. American statistics also fueled interest in getting rid of portraits of dead presidents, as the number of construction permits issued decreased by 79 thousand and the number of construction projects started decreased by 12 thousand waited for a slightly different result. In particular, the number of issued construction permits decreased, instead of an increase of only 1 thousand. The Number of existing buildings had to decline but only by 4 thousand. The general mood of investors who do not particularly believe in the bright future of the European economy.

Nevertheless, the dollar may continue its progressive decline and the beginning of this process will put data on retail sales in the UK, where inflation has not increased, but sales may accelerate the growth rate from 2.3% to 2.6%. In other words, prices remained the same and they began to buy more. Consequently, the profits of sellers and manufacturers are still growing. The American statistics will continue to disappoint market participants since the total number of applications for unemployment benefits may increase by 5 thousand. In particular, the number of initial applications for unemployment benefits should increase by 2 thousand and repeated ones by another 3 thousand.

The euro/dollar currency pair has once again found support in the area of 1.1180, where it slowed down and turned around. It is likely to assume that the quotation will still be able to strengthen slightly towards 1.1260/1.1275, however, stagnation is possible.

The pound/dollar currency pair went to the retracement stage in the general overheating of short positions after the impulse movement and the break of the two-year minimum found a foothold around the 1.2380 mark. It is likely to assume that due to overheating, we can see a corrective move in the direction of 1.2480-1.2490.