EUR/USD and GBP/USD trading plan for beginners on February 21, 2023
February 21, 2023 10:22 am
Details of the economic calendar on February 20
On Monday, the macroeconomic calendar was traditionally empty. No important statistics were released. In addition, due to a national holiday in the United States, banks, funds and exchanges were closed.
Analysis of trading charts from February 20
EURUSD is stagnant around the level of 1.0650, which indicates uncertainty among market participants. Note that this stagnation is part of the corrective movement that began after reaching the high of the medium-term upward trend. Since the euro exchange rate is not recovering, we can assume that the market is still in a corrective move.
GBPUSD formed a stagnation in the upper area of the 1.2000/1.2050 psychological level, which may indicate the process of accumulation of trading forces, according to the theory of technical analysis.
Economic calendar for February 21
Preliminary data on business activity indices in the European Union, the United Kingdom and the United States will be released today. All indices are estimated to rise, which will not allow investors to give preference to one or another currency. However, if the forecasts do not match and there are differences, this may lead to speculative activity in the market.
Time targeting:
EU PMIs (Feb.) – 09:00 UTC
UK PMIs – 09:30 UTC
USA PMIs (Feb.) – 13:30 UTC
EUR/USD trading plan for February 21
To continue the current corrective movement, it is necessary that the quote remains below the level of 1.0650 throughout the day. If this happens, we can expect an increase in short positions on the euro towards 1.0500.
On the other hand, for the first technical signal to appear about a possible recovery of the euro rate in relation to the current correction, the quote needs to exceed the level of 1.0750. If the price holds above the 1.0800 level for a four-hour period, this will be a confirmation signal.
GBP/USD trading plan for February 21
The area of 1.2000 support level continues to put pressure on the market, but we can assume that the stagnation observed at the moment is a temporary manifestation of the price. In the near future, an impulse is expected to appear, which will indicate the further direction of price movement.
In order to get a full-fledged technical signal about the further movement of quotes, you need to make sure that the price stays outside the control values in the daily period: 1.1950 for a downward scenario and 1.2050 for an upward one.
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 February 20
On Monday, the macroeconomic calendar was traditionally empty. No important statistics were released. In addition, due to a national holiday in the United States, banks, funds and exchanges were closed.
Analysis of trading charts from February 20
EURUSD is stagnant around the level of 1.0650, which indicates uncertainty among market participants. Note that this stagnation is part of the corrective movement that began after reaching the high of the medium-term upward trend. Since the euro exchange rate is not recovering, we can assume that the market is still in a corrective move.
GBPUSD formed a stagnation in the upper area of the 1.2000/1.2050 psychological level, which may indicate the process of accumulation of trading forces, according to the theory of technical analysis.
Economic calendar for February 21
Preliminary data on business activity indices in the European Union, the United Kingdom and the United States will be released today. All indices are estimated to rise, which will not allow investors to give preference to one or another currency. However, if the forecasts do not match and there are differences, this may lead to speculative activity in the market.
Time targeting:
EU PMIs (Feb.) – 09:00 UTC
UK PMIs – 09:30 UTC
USA PMIs (Feb.) – 13:30 UTC
EUR/USD trading plan for February 21
To continue the current corrective movement, it is necessary that the quote remains below the level of 1.0650 throughout the day. If this happens, we can expect an increase in short positions on the euro towards 1.0500.
On the other hand, for the first technical signal to appear about a possible recovery of the euro rate in relation to the current correction, the quote needs to exceed the level of 1.0750. If the price holds above the 1.0800 level for a four-hour period, this will be a confirmation signal.
GBP/USD trading plan for February 21
The area of 1.2000 support level continues to put pressure on the market, but we can assume that the stagnation observed at the moment is a temporary manifestation of the price. In the near future, an impulse is expected to appear, which will indicate the further direction of price movement.
In order to get a full-fledged technical signal about the further movement of quotes, you need to make sure that the price stays outside the control values in the daily period: 1.1950 for a downward scenario and 1.2050 for an upward one.
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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