EUR/USD and GBP/USD trading plan for beginners on May 16, 2023
May 16, 2023 10:24 am
Details of the economic calendar on May 15
Industrial production data in the European Union turned out worse than expected. Production growth was replaced by a decline of 1.4%. This factor limited the potential growth of the euro exchange rate.
Analysis of trading charts from May 15
The new trading week began with a minor pullback, resulting in EUR/USD strengthening by about 45 points. There is still selling pressure in the market, otherwise the euro’s recovery process would have been more significant.
GBP/USD temporarily pulled back above the 1.2500 mark, but sellers continue to exert pressure in the market. As a result, the quote quickly returned to its previous level.
Economic calendar for May 16
The UK labor market data put pressure on the British currency due to investor disappointment with the current situation in the country. According to the report, the unemployment rate rose from 3.8% to 3.9%, and the number of unemployment benefit claims continues to increase.
In the European Union, the second GDP estimate for the first quarter is expected to be published but is unlikely to have a significant impact as it should only confirm the initial estimate. Particular attention will be paid to American statistics, which are likely to act as a catalyst for the weakening of the U.S. dollar. Retail sales growth is expected to slow from 2.9% to 1.4%, and industrial production growth rates are likely to decline from 0.5% to 0.3%.
Time targeting:
EU GDP – 09:00 UTC
U.S. Retail Sales – 12:30 UTC
U.S. Industrial Production – 13:15 UTC
EUR/USD trading plan for May 16
To proceed with the recovery phase, it is necessary to keep the quote above the 1.0900 level. Otherwise, the current correction movement may resume, and the local low will be updated.
GBP/USD trading plan for May 16
With the opening of the European session, there was speculative frenzy on short positions triggered by the news flow. Such intensive inertial movement could lead to a rapid overheating of sellers and the emergence of a new pullback. However, speculators may ignore technical signals of overselling. In case of such disregard, a steady hold of the price below the 1.2440 mark could lead to a continuation of the correction.
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 May 15
Industrial production data in the European Union turned out worse than expected. Production growth was replaced by a decline of 1.4%. This factor limited the potential growth of the euro exchange rate.
Analysis of trading charts from May 15
The new trading week began with a minor pullback, resulting in EUR/USD strengthening by about 45 points. There is still selling pressure in the market, otherwise the euro’s recovery process would have been more significant.
GBP/USD temporarily pulled back above the 1.2500 mark, but sellers continue to exert pressure in the market. As a result, the quote quickly returned to its previous level.
Economic calendar for May 16
The UK labor market data put pressure on the British currency due to investor disappointment with the current situation in the country. According to the report, the unemployment rate rose from 3.8% to 3.9%, and the number of unemployment benefit claims continues to increase.
In the European Union, the second GDP estimate for the first quarter is expected to be published but is unlikely to have a significant impact as it should only confirm the initial estimate. Particular attention will be paid to American statistics, which are likely to act as a catalyst for the weakening of the U.S. dollar. Retail sales growth is expected to slow from 2.9% to 1.4%, and industrial production growth rates are likely to decline from 0.5% to 0.3%.
Time targeting:
EU GDP – 09:00 UTC
U.S. Retail Sales – 12:30 UTC
U.S. Industrial Production – 13:15 UTC
EUR/USD trading plan for May 16
To proceed with the recovery phase, it is necessary to keep the quote above the 1.0900 level. Otherwise, the current correction movement may resume, and the local low will be updated.
GBP/USD trading plan for May 16
With the opening of the European session, there was speculative frenzy on short positions triggered by the news flow. Such intensive inertial movement could lead to a rapid overheating of sellers and the emergence of a new pullback. However, speculators may ignore technical signals of overselling. In case of such disregard, a steady hold of the price below the 1.2440 mark could lead to a continuation of the correction.
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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