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FX.co ★ Trading recommendations for starters of EUR/USD and GBP/USD on June 10, 2021

Trading recommendations for starters of EUR/USD and GBP/USD on June 10, 2021

Here are the details of the economic calendar from June 9:

Yesterday's economic calendar did not include the publication of important statistics from Europe, Britain, and the US, but everyone understood that the main information flow would emerge on Thursday.

Analysis of trading charts from June 9:

The EUR/USD pair showed local activity during the US trading session, but there was a local speculative hype that allowed the quote to return to its original position, namely at the levels of the beginning of the day.

The GBP/USD pair rebounded again from the area of the average level of the channel 1.4172, where the volume of long positions declined, so short positions came in the direction of the lower border of the channel 1.4100.

  • Short positions – sell positions
  • Long positions – buy positions

The trading recommendation on June 9 considered a similar price behavior, so the method of trading on a price rebound was suggested.

Trading recommendations for starters of EUR/USD and GBP/USD on June 10, 2021

Trading recommendation for EUR/USD and GBP/USD on June 10, 2021

Today, we have the most important day of the week in terms of the economic calendar. The first event that will attract a lot of attention from traders is the meeting of the European Central Bank (ECB), where its results are not so much interesting. The reason lies in Christine Lagarde's subsequent press conference, where monetary policy details may arise, in particular the fate of the interest rate.

To simply put it, the Euro currency will accelerate if Christine Lagarde announces that there is no reason to worry about inflationary risks. But if she points out fears about a rapid rise in inflation, this will be a signal to sell the euro.

11:45 Universal time - Results of the ECB meeting

12:30 Universal time - Press conference

The second important event is the publication of US inflation data, which is expected to rise from 4.2% to 4.7%. Such a strong inflation growth leaves the Fed no choice but to change the strategy of monetary policy in terms of tightening it, which can provoke panic in the market and as a result, a sell-off in the US dollar.

12:30 Universal time - Inflation data

Looking at the EUR/USD trading chart, one can see an attempt to break through the support level of 1.2160, but based on the points of price retention relative to the four-hour period, there is only a puncture of the level with the shadows of the candle. Traders continue to analyze the fixing points relative to the levels of 1.2160/1.2200, as this may indicate a subsequent movement.

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Trading recommendations for starters of EUR/USD and GBP/USD on June 10, 2021

As for the trading chart of the GBP/USD, there is a primary signal for an important change in the market tact, where the lower limit of the side channel 1.4100/1.4245 was broken during the European session.

The price being kept below the level of 1.4080 in the H4 time frame will lead to a further growth in the volume of short positions, which will open the way towards the level of 1.4000.

Otherwise, a false breakdown will be observed with the price returning to the borders of the sideways channel.

Trading recommendations for starters of EUR/USD and GBP/USD on June 10, 2021

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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