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FX.co ★ Trading recommendations for starters of EUR/USD and GBP/USD on July 22, 2021

Trading recommendations for starters of EUR/USD and GBP/USD on July 22, 2021

Here are the details of the economic calendar from July 21:

Yesterday, there were no important statistics from Europe, Britain and the United States.

Analysis of trading charts from July 21:

The EUR/USD pair failed to break through the price coordinates of 1.1750, instead there was a symbolic pullback to the previously broken level of 1.1800.

To put it simply, market participants slowed down the decline before the main event – the ECB meeting.

The trading recommendation on July 21 considered the scenario of a slowdown if the coordinate 1.1750 is not broken, which ultimately led to an amplitude of 1.1755/1.1800.

The GBP/USD pair moved into a technical correction stage after a sharp declineJuly 16-20, where the price coordinates 1.3571 served as a variable pivot point.

The situation with the correction was quite expected in the market due to the pound's high oversold level.

The trading recommendation on July 21 considered a possible correction, so buy positions were placed in the area of 1.3650, and the profit-taking point was determined within the level of 1.3700.

Trading recommendations for starters of EUR/USD and GBP/USD on July 22, 2021

July 22 economic calendar:

Today, the results of the planned meeting of the European Central Bank (ECB) will be released, where market participants are anticipating new information on the prospects for EU's monetary policy.

It is clear that there will be no fundamental changes, so most traders are not waiting for the results of the meeting, but for the press conference of the ECB President Christine Lagarde, where the ECB's plans for the future can be announced, as was recently done by the Federal Reserve System (FRS).

In this case, it is worth carefully monitoring the information from the meeting, as well as from the press conference, since a speculative jump will be set in the market depending on it.

So, if the ECB leaves everything as it is (unchanged), then the US dollar can get support again. But if the head of the ECB repeats the path of the Fed and announces an early increase in the refinancing rate, then the euro will go into a growth phase.

ECB meeting results - 11:45 00 Universal time

ECB President press conference - 12:30 Universal time

During the US trading session, America will release its weekly data on applications for unemployment benefits, where they are predicted to reduce their volume.

  • Volume of initial applications for benefits may fall from 360 thousand to 350 thousand.
  • Volume of repeated applications for benefits may fall from 3,241 thousand to 3,100 thousand.

Weekly data on applications for unemployment benefits - 12:30 Universal time

* 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, a decline in the number of applications for benefits can lead to a strengthening of the national currency – USD.

Trading recommendation for EUR/USD on July 22, 2021

Looking at the EUR/USD trading chart, one can see price fluctuations along the level of 1.1800, where the accumulation process of trading forces is already taking place. The existing amplitude may well expand by 25-30 points, which will eventually lead to a new round of acceleration.

To put it simply, traders are waiting for the ECB meeting and press conference, which can be followed by speculative hype in the market.

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 if the price is kept above the level of 1.1830, in the direction of 1.1900.

* The accumulation process is price fluctuations in a closed amplitude, where at the moment of the breakdown of a particular stagnation boundary, a local acceleration in the direction of breakdown often occurs.

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Trading recommendations for starters of EUR/USD and GBP/USD on July 22, 2021

Trading recommendation for GBP/USD on July 22, 2021

As for the trading chart of the GBP/USD, it can be seen that the correction is still relevant in the market, but the resistance area of 1.3750/1.3800 is standing in the way of buyers, which can negatively affect the volume of long positions.

To simply put it, the correction course can go to a slowdown and completion.

Sell positions:

They are considered by traders if a price rebound occurs from the resistance area of 1.3750/1.3800, which will eventually lead to the continuation of a decline in the direction of the pivot point of 1.3571.

Buy positions:

Traders are still in the area of the 1.3650 level and profit-taking is currently taking place. The entry into the deal was taken into account in the previous analytical review.

* 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.

Trading recommendations for starters of EUR/USD and GBP/USD on July 22, 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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