FX.co ★ Tips for beginner traders in EUR/USD and GBP/USD on June 20, 2022

Details of the economic calendar from June 17

The final data on inflation in the eurozone fully coincided with the preliminary estimate. The consumer price index rose from 7.4% to 8.1%. These indicators have already been taken into account by the market. For this reason, there was no reaction to the euro.

During the American trading session, data on industrial production in the United States were published, where a slowdown in the growth rate was recorded from 6.29% to 5.83%. Taking into account the fact that a stronger slowdown to 4.9% was expected, the US dollar reacted positively to the indicators.

Analysis of trading charts from June 17

EUR/USD partially recovered its positions last Friday. This led to a local price retention below the level of 1.0500. Despite the current strengthening of dollar positions, the quote is still in the correction stage.

GBP/USD lost about 200 points by the end of last week. This indicates the possibility of completion of the corrective move, where the level of 1.2400 played as a variable resistance.

Economic calendar for June 20

Today is a holiday in the United States on the occasion of the celebration of Emancipation Day (Juneteenth). For this reason, banks, exchanges, funds, and companies are not working. This will lead to a decrease in trading volumes.

In Europe and the UK, important statistics are not expected to be released.

Trading plan for EUR/USD on June 20

Based on the fact that trading volumes are reduced today, there may be a slowdown in activity in the market. The current stagnation may lead to an amplitude movement along the level of 1.0500.

The scenario of prolonging the correction will be considered by traders in case the price is kept above the value of 1.0570 in a four-hour period. Until then, the current stagnation indicates a gradual recovery of dollar positions.

Trading plan for GBP/USD on June 20

Short-term overheating has emerged during the recent downward momentum. This action led to a local pullback followed by stagnation. It can be assumed that the quote will temporarily be dominated by the variable turbulence, where the values of 1.2170/1.2260 serve as stagnation boundaries.

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.