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FX.co ★ Trading recommendations for starters of EUR/USD and GBP/USD on July 21, 2021

Trading recommendations for starters of EUR/USD and GBP/USD on July 21, 2021

Here are the details of the economic calendar from July 20:

Yesterday, the United States released its data on the construction sector for June, where the volume of new home construction rose by 6.3% compared to the previous month and amounted to 1.643 million in annualized rates.

The number of permits for the construction of new homes in June decreased by 5.1% compared to May, that is, to 1.598 million in terms of annual rates, which is the lowest level since October 2020.

The US dollar continued to strengthen at the time of the publication of statistics (12:30 Universal time).

* Construction permits are the absolute number of permits for the construction of new residential buildings issued by state authorities in the reporting month. The U.S. Census Bureau collects this data by sending requests to permitting agencies across the country. The monthly survey sample covers 9,000 permit-issuing points across the country.

The volume of construction of new houses is the absolute number of new housing construction projects that began in the reporting month.

Analysis of trading charts from July 20:

The EUR/USD pair managed to work the level of 1.1800 as resistance. As a result, the quote returned to the base area on July 19, where the volume of short positions fell again.

Given the quote's behavior, we can say that the downward interest remains in the market; otherwise, the level of 1.1800 would have been broken from the bottom/up, and sellers would not have been so confident in increasing the volume of short positions.

The trading recommendation on July 20 considered the scenario of a price rebound from the level of 1.1800, but the subsequent entry into sell positions was assumed after the price was kept below the level of 1.1760 in an H4 time frame.

* Short positions or Short means selling positions in anticipation of a decrease in the value of the asset.

The GBP/USD pair continued to decline despite the oversold status. As a result, the quote locally dropped to the area of 1.3571.

In this case, we are dealing with an inertial course, on the basis of which a full-scale recovery process has emerged relative to the medium-term upward trend.

The trading recommendation on July 20 considered the possibility of a further decline, so sell positions were opened in the area of 1.3640.

Trading recommendations for starters of EUR/USD and GBP/USD on July 21, 2021

July 21 economic calendar:

There are no important statistics from the EU, Britain, and the United States today, but this will not cause stagnation in the market. We still have a fairly strong speculative interest, which is driven by trading volumes on the market. Tomorrow, the ECB will hold its scheduled meeting, which may lead to the release of various information to the media, which speculators will try to grab.

Trading recommendation for EUR/USD on July 21, 2021

Looking at the EUR/USD trading chart, one can see that sellers returned to the market after a slight pullback, increasing the volume of short positions. In this situation, market participants are still adhering to the downward development, but for the greatest interest in short positions to arise, the quote must remain below the level of 1.1750. Otherwise, price stagnation may occur in the range of 1.1755/1.1800.

Sell positions:

Traders consider this if the price is kept below the level of 1.1750, in the direction of 1.1700.

Buy positions:

Traders consider this as an alternative scenario, that is if the price is kept above the level of 1.1825.

See also: Start Forex trading with a European level broker!
Trading recommendations for starters of EUR/USD and GBP/USD on July 21, 2021

Trading recommendation for GBP/USD on July 21, 2021

As for the trading chart of the GBP/USD, it can be seen that the quote is already moving at the February levels, without reducing the downward interest. In order for the inertial movement to persist, the quote must be kept below the level of 1.3570. Otherwise, a technical pullback may occur.

Sell positions:

Traders will consider this if the price is kept below the level of 1.3570, in the direction of 1.3500

Buy positions:

If a technical pullback occurs, traders will consider the buy position oriented in terms of the price movement 1.3650 ---> 1.3700.

Trading recommendations for starters of EUR/USD and GBP/USD on July 21, 2021

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.

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.

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