Here are the details of the economic calendar for Sept 14:
The UK labor market data was published yesterday at 6:00 Universal time, where the unemployment rate declined from 4.7% to 4.6%. In turn, employment increased in July by 183,000, while the number of applications for unemployment benefits declined by 58,600 in August.
The UK labor market is recovering, but traders probably expected stronger indicators. There was a reaction from the pound, but this did not change the market movement. In simple words, the pound sterling strengthened by only 0.3% against the US dollar.
Yesterday's main event was the US inflation data, where a decline was recorded from 5.4% to 5.3%. High speculation arose when the statistics were published, which initially led to a weakening of dollar positions, and then to its sharp strengthening.
Analysis of trading charts from September 14:
The price rebound from the pivot point of 1.1770 returned market participants to the area of the local high (1.1850) of September 10, where the volume of long positions decreased on a natural basis. This led to a reverse move of the quote towards the support level of 1.1800.
Taking into account the recent price fluctuations, the market situation has not changed. There is still a downward trend from the beginning of June. The chance of a subsequent depreciation of the euro remains.
The trading plan on September 14 considered a decline, but only after keeping the price below the level of 1.1800. Up to this point, the risk of subsequent growth from the support level of 1.1770 remained.
Yesterday, the GBP/USD pair showed high volatility, resulting in a local breakdown of the resistance level of 1.3880. The buyers' success was temporary. There was a sharp reduction in the volume of long positions in the area of 1.3880/1.3890. This led to a reversal towards the 1.3800 level.
* 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.Long positions or Long means buy positions.
September 15 economic calendar:
The UK released its inflation data at 6:00 Universal time today, where consumer prices increased from 2.0% to 3.2%. Inflation is growing above the forecast of 2.9%, which stimulates speculators to sharp price changes in the pound.
Meanwhile, the EU will publish its data on industrial production at 9:00 Universal time, where the growth rate will most likely slow down from 9.7% to 6.2% in annual terms.
A similar figure will be released in the United States, where industrial growth is expected to slow from 6.6% to 5.0%.
Trading plan for EUR/USD on September 14:
The level of 1.1800 is still holding back sellers, which leads to stagnation with a subsequent pullback. The growth of the volume of short positions will occur if the price is kept below the level of 1.1790 for a four-hour period. This will lead to a gradual decline towards the 1.1770-1.1700 range.
An alternative scenario will become relevant if the price is kept above the level of 1.1850 for a four-hour period. In this case, the downward cycle will be disrupted, which may lead to a change of trading interests.
Trading plan for GBP/USD on September 15:
Buyers of the pound clung again to the support level of 1.3800, slowing down the downward cycle and forming a pullback in the market. The looped price fluctuation between the two levels of 1.3800 and 1.3880 still takes place. Traders pay special attention to 1.3800, since keeping the price below it for a four-hour period is highly likely to lead to a gradual decline.
As long as the levels are in their places and are not considered broken, there will be an amplitude move within their borders.Short positions or Short means sell positions.
* The support level is the so-called price level, from which the quote can slow down or stop the downward course. The principle of constructing this level is to reduce the points of support on the history of the chart, where the price reversal in the market has already occurred earlier.
* A change of trading interests is when there is a change of direction in the market from ascending to descending or from descending to ascending.
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 candle in detail, you will see its characteristics of a relative period: the opening price, closing price, and 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 because the market is constantly dynamic and it is important to understand what is happening.