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FX.co ★ Trading recommendations for starters of EUR/USD and GBP/USD on July 28, 2021

Trading recommendations for starters of EUR/USD and GBP/USD on July 28, 2021

Here are the details of the economic calendar from July 27:

Yesterday, America released its volume of orders for durable goods, where their growth in June amounted to 0.8%, which is noticeably less than the forecast of 2.1%.

The divergence of expectations for the economic recovery led to a weakening of the US dollar.

* Durable goods orders are an economic indicator that reflects the change in the value of new durable goods orders received by United States enterprises in the reporting month compared to the previous month. Durable goods are those goods whose service life exceeds three or more years, such as cars, machinery, equipment, etc.

The data for processing was obtained by interviewing more than 5,000 manufacturers of durable goods across the country, representing 92 industries.

Analysis of trading charts from July 27:

The EUR/USD pair showed an upward interest, on the basis of which the upper limits of the lateral amplitude of 1.1750/1.1830 fell under the blow of the breakdown. The interest of buyers subsided after reaching the reference value. After that, there was a reduction in the volume of long positions, which led to stagnation and a price pullback.

To simply put it, the upper border of the sideways amplitude of 1.1750/1.1830 still acts as a resistance in the market.

The GBP/USD pair still managed to maintain an upward trend in the market. As a result, the quote initially consolidated above the level of 1.3850, and then headed towards the forecasted resistance level of 1.3900.

It should be noted that the resistance level of 1.3900 has repeatedly led to a reduction in the volume of long positions in history, where the price convergence with the reference level was no exception this time.

Short positions or Short means sell positions. Long positions or Long means buy positions.

* 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 28, 2021

July 28 economic calendar:

Today, we have one of the most important events for the currency month – the results of the meeting of the Federal Open Market Committee (FOMC), where the regulator is likely to leave the key rate unchanged at the level of 0-0.25%. However, investors are interested in the future prospects of monetary policy in the US, so special attention will be paid to comments and press conferences.

FOMC meeting results - 18:00 Universal time

FOMC press conference - 18:30 Universal time

Trading recommendation for EUR/USD on July 28, 2021

Looking at the EUR/USD trading chart, one can see that the quote is still within the borders of the lateral amplitude 1.1750/1.1830. Traders may face increased volatility in this situation, where an important event is on the agenda, namely the results of the Fed meeting. Therefore, special attention should be paid to finding a quote relative to the range set in the market.

To confirm the scenario of the upward price development, the quote must hold above the level of 1.1850, which will open the way towards the level of 1.1900.

The downward price development will still be considered if the price is kept below the level of 1.1750, which will open the way towards the 1.1700 coordinate.

Trading recommendations for starters of EUR/USD and GBP/USD on July 28, 2021

Trading recommendation for GBP/USD on July 28, 2021

As for the trading chart of the GBP/USD, it can be seen that there is a slight stagnation-pullback relative to the resistance area in the face of the 1.3900 level. The natural basis associated with this area is already putting pressure on long positions, which leads to a reduction in their volume. If the price level of 1.3900 continues to act as a resistance, then we may well see a correction stage in the direction of 1.3755 considering the pound's local overbought status.

An alternative scenario for the development of the market will be considered if the price is kept above the level of 1.3915, which will most likely open the way towards the psychological level of 1.4000.

* Psychological levels are round values (1,2000, 1,3000, 1,4000,1,5000, etc.) that serve as key coordinates in the market, which traders pay special attention to. These levels are often used as support or resistance.

Trading recommendations for starters of EUR/USD and GBP/USD on July 28, 2021

Trading recommendation for GBP/USD on July 28, 2021

As for the trading chart of the GBP/USD, it can be seen that there is a slight stagnation-pullback relative to the resistance area in the face of the 1.3900 level. The natural basis associated with this area is already putting pressure on long positions, which leads to a reduction in their volume. If the price level of 1.3900 continues to act as a resistance, then we may well see a correction stage in the direction of 1.3755 considering the pound's local overbought status.

An alternative scenario for the development of the market will be considered if the price is kept above the level of 1.3915, which will most likely open the way towards the psychological level of 1.4000.

* Psychological levels are round values (1,2000, 1,3000, 1,4000,1,5000, etc.) that serve as key coordinates in the market, which traders pay special attention to. These levels are often used as support or resistance.

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