EUR/USD and GBP/USD: Trading plan for beginner traders on August 31, 2023
August 31, 2023 10:24 am
Details of the Economic Calendar on August 30
In August, employment in the U.S. private sector increased by 177,000 people, as data published in the ADP report on Wednesday showed. This figure followed a July increase of 371,000 (revised from 324,000) and was below the market expectations of 195,000.
The U.S. dollar faced slight selling pressure after the report was published.
Analysis of Trading Charts from August 30
The EUR/USD currency pair strengthened in a short period by more than 150 points. This movement led to a rise in the quote above the 1.0900 level, which became the primary technical signal indicating the end of the correction cycle.
GBP/USD jumped above the 1.2700 level, which is a result of the intense upward movement. This price movement indicates an increase in the volume of long positions, contributing to the recovery of the British pound after its recent decline.
Economic Calendar for August 31
One of the main events on Thursday will be the preliminary assessment of inflation in the Eurozone. The consumer price growth rate may slow from 5.3% to 5.0%. Such a decrease in inflation might be a basis for the European Central Bank to end its interest rate hike cycle, possibly leading to a significant weakening of the euro’s rate.
EUR/USD Trading Plan for August 31
In this scenario, a stable price retention above the 1.0900 level might lead to a subsequent increase in the volume of long positions. This move will lead to the next phase of euro recovery relative to the five-week correction cycle. As for the bearish scenario, the quote would need to drop below the 1.0900 level first. In that case, there may be a risk of the correction cycle resuming.
GBP/USD Trading Plan for August 31
A stable price above the 1.2700 mark may lead to a further increase in the value of the British currency. In the long run, such a movement might bring the rate closer to the upper boundary of the previously breached sideways channel of 1.2650/1.2800. A bearish scenario will become relevant when the price returns below 1.2700. A price fluctuation within the range of 1.2650/1.2700 is likely in this situation.
What’s on the charts
The candlestick chart type is white and black graphic rectangles with lines above and below. With a detailed analysis of each individual candle, you can see its characteristics relative to a particular time frame: opening price, closing price, intraday high and low.
Horizontal levels are price coordinates, relative to which a price may stop or reverse its trajectory. In the market, these levels are called support and resistance.
Circles and rectangles are highlighted examples where the price reversed in history. This color highlighting indicates horizontal lines that may put pressure on the asset’s price in the future.
The up/down arrows are landmarks of the possible price direction in the future.
The material has been provided by InstaForex Company – www.instaforex.com
Details of the Economic Calendar on August 30
In August, employment in the U.S. private sector increased by 177,000 people, as data published in the ADP report on Wednesday showed. This figure followed a July increase of 371,000 (revised from 324,000) and was below the market expectations of 195,000.
The U.S. dollar faced slight selling pressure after the report was published.
Analysis of Trading Charts from August 30
The EUR/USD currency pair strengthened in a short period by more than 150 points. This movement led to a rise in the quote above the 1.0900 level, which became the primary technical signal indicating the end of the correction cycle.
GBP/USD jumped above the 1.2700 level, which is a result of the intense upward movement. This price movement indicates an increase in the volume of long positions, contributing to the recovery of the British pound after its recent decline.
Economic Calendar for August 31
One of the main events on Thursday will be the preliminary assessment of inflation in the Eurozone. The consumer price growth rate may slow from 5.3% to 5.0%. Such a decrease in inflation might be a basis for the European Central Bank to end its interest rate hike cycle, possibly leading to a significant weakening of the euro’s rate.
EUR/USD Trading Plan for August 31
In this scenario, a stable price retention above the 1.0900 level might lead to a subsequent increase in the volume of long positions. This move will lead to the next phase of euro recovery relative to the five-week correction cycle. As for the bearish scenario, the quote would need to drop below the 1.0900 level first. In that case, there may be a risk of the correction cycle resuming.
GBP/USD Trading Plan for August 31
A stable price above the 1.2700 mark may lead to a further increase in the value of the British currency. In the long run, such a movement might bring the rate closer to the upper boundary of the previously breached sideways channel of 1.2650/1.2800. A bearish scenario will become relevant when the price returns below 1.2700. A price fluctuation within the range of 1.2650/1.2700 is likely in this situation.
What’s on the charts
The candlestick chart type is white and black graphic rectangles with lines above and below. With a detailed analysis of each individual candle, you can see its characteristics relative to a particular time frame: opening price, closing price, intraday high and low.
Horizontal levels are price coordinates, relative to which a price may stop or reverse its trajectory. In the market, these levels are called support and resistance.
Circles and rectangles are highlighted examples where the price reversed in history. This color highlighting indicates horizontal lines that may put pressure on the asset’s price in the future.
The up/down arrows are landmarks of the possible price direction in the future.
The material has been provided by InstaForex Company – www.instaforex.com
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