EUR/USD and GBP/USD: Trading plan for beginners on June 6, 2023
June 6, 2023 10:24 am
Details of the economic calendar on June 5
Producer Price Index in the EU decreased from 5.5% to 1.0%, which is a clear signal of inflation decline. Such a decrease may lead to a change in the European Central Bank’s policy regarding interest rate hikes in the near future. These statistical data had a negative impact on the value of the euro, which influenced the British pound through positive correlation.
Analysis of trading charts from June 5
EUR/USD changed its direction around the value of 1.0680, which led to a partial recovery of its value. It is worth noting that the euro is still oversold against the dollar, and this fact makes short positions highly unstable.
GBP/USD was in the process of intensive decline and almost reached the support level of 1.2350, which caused a reduction in the volume of short positions. As a result, a price rebound occurred, contributing to the process of restoring the value of the British currency after a recent decline.
Economic calendar for June 6
Today’s data on retail sales in the EU can be an important factor for the market. It is expected that the pace of decline in retail sales will decrease from -3.8% to -3.1%. Considering the already oversold state of the euro, this data can stimulate market participants to accumulate long positions.
Time targeting:
EU Retail Sales – 09:00 UTC
EUR/USD trading plan for June 6
In this situation, if the price holds above the level of 1.0750, there is a probability of subsequent growth, which may lead to the retesting of last week’s local high. However, to resume the bearish scenario, the quote needs to return to the value of 1.0680.
GBP/USD trading plan for June 6
In this situation, stable price holding above the value of 1.2450 may lead to subsequent growth in the value of the British pound and continuation of the recovery cycle. However, traders will consider a bearish scenario if the price falls below 1.2400. In this case, the 1.2350 support level will be under threat of a breakdown.
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 June 5
Producer Price Index in the EU decreased from 5.5% to 1.0%, which is a clear signal of inflation decline. Such a decrease may lead to a change in the European Central Bank’s policy regarding interest rate hikes in the near future. These statistical data had a negative impact on the value of the euro, which influenced the British pound through positive correlation.
Analysis of trading charts from June 5
EUR/USD changed its direction around the value of 1.0680, which led to a partial recovery of its value. It is worth noting that the euro is still oversold against the dollar, and this fact makes short positions highly unstable.
GBP/USD was in the process of intensive decline and almost reached the support level of 1.2350, which caused a reduction in the volume of short positions. As a result, a price rebound occurred, contributing to the process of restoring the value of the British currency after a recent decline.
Economic calendar for June 6
Today’s data on retail sales in the EU can be an important factor for the market. It is expected that the pace of decline in retail sales will decrease from -3.8% to -3.1%. Considering the already oversold state of the euro, this data can stimulate market participants to accumulate long positions.
Time targeting:
EU Retail Sales – 09:00 UTC
EUR/USD trading plan for June 6
In this situation, if the price holds above the level of 1.0750, there is a probability of subsequent growth, which may lead to the retesting of last week’s local high. However, to resume the bearish scenario, the quote needs to return to the value of 1.0680.
GBP/USD trading plan for June 6
In this situation, stable price holding above the value of 1.2450 may lead to subsequent growth in the value of the British pound and continuation of the recovery cycle. However, traders will consider a bearish scenario if the price falls below 1.2400. In this case, the 1.2350 support level will be under threat of a breakdown.
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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