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Tips for beginner traders in EUR/USD and GBP/USD on July 18, 2022

Relevance up to 03:00 2022-07-19 UTC–4

Details of the economic calendar from July 15

Retail sales in the United States accelerated to 8.4% instead of the projected slowdown from 8.1% to 6.5%. At that time, industrial production data slowed to 4.16%.

Despite the multidirectional statistics, the quote was in the stage of a pullback from the local low.

Analysis of trading charts from July 15

The EURUSD currency pair is in the process of pulling back from the parity level, where it managed to slightly strengthen its position in the market. As a result of this movement, the quote returned to the value area of 1.0100, where in the period of July 13, there was a reduction in the volume of long positions.

The GBPUSD currency pair, following the euro, went into a pullback stage, which led to an upward move by about 130 points. Despite the existing price changes, the downward mood remains in the market.

Economic calendar for July 18

Monday is traditionally accompanied by an empty macroeconomic calendar. Important statistics in Europe, the UK, and the United States are not expected.

Trading plan for EUR/USD on July 18

Speculative downward interest persists in the market, despite a clear signal that the euro is oversold. Thus, a reverse movement to the parity level is still possible. As a result, the amplitude movement can be classified as an accumulation of trading forces.

At the same time, traders consider a correction if the given pullback persists in the market. The next signal to buy the euro will occur when the price holds above 1.0150 in a four-hour period.

Trading plan for GBP/USD on July 18

If the pullback stage slows down relative to the current values, a new round of growth in the volume of short positions is possible. In this case, it allows updating the local low of the downward trend.

The price retention above 1.1950 in a four-hour period will allow traders to consider a prolonged pullback. This move may lead to a further move towards the upper area of the 1.2000/1.2050 psychological level.

In your work, you should consider the indisputable fact of a positive correlation between the EURUSD and GBPUSD trading instruments. In this case, EURUSD is the leader, and GBPUSD is the follower.

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.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

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