Here are the details of the economic calendar from August 23:
Yesterday, preliminary data on the purchasing managers' index in Europe, the United Kingdom, and the United States for August was released.
Details of statistics:
8:00 Universal time - Index of purchasing managers in the European services sector: Prev. 59.8 pips; Forecast 59.8 points; Fact. 59.7 pips
8:00 Universal time - Index of purchasing managers in the manufacturing sector in Europe: Prev. 62.8 pips; Forecast 62.0 points; Fact. 61.5 pips
The EU purchasing managers' composite index declined from 60.2 to 59.8.
The Euro ignored the decline in indicators, which is likely due to a correction in the market, and the euro was locally oversold.
8:30 Universal time - UK Service Sector Purchasing Managers Index: Prev. 59.6 pips; Forecast 58.7 points; Fact. 55.5 pips
8:30 Universal time - UK Manufacturing Purchasing Managers Index: Prev. 60.4 pips; Forecast 60.4 points; Fact. 60.1 pips
The UK purchasing managers' composite index may decline from 60.2 to 59.8.
After the euro, the pound sterling ignores negative data. The correction continues.
13:45 Universal time - Index of purchasing managers in the US services sector: Prev. 59.9 pips; Forecast 59.5 points; Fact. 55.4 pips
13:45 Universal time - Index of purchasing managers in the US manufacturing sector: Prev. 63.4 pips; Forecast 62.5 points; Fact. 61.2 pips
The US purchasing managers' composite index declined from 59.9 to 55.2.
The index data is not the best, but based on the quotes' behavior, there is a technical correction in the market.
Analysis of trading charts from August 23
The EUR/USD pair returned to the level of 1.1750 during the correction from the base area of 2021. Despite the corrective movement, the downward interest is still preserved in the market. This is indicated by a downward cycle from the beginning of June and a sequential update of the local low.
The trading plan on August 23 considered the scenario of correction, where the area of the 1.1760 mark could act as a resistance.
The corrective movement of the GBP/USD pair is due to the high level of oversold. This was due to the sharp decline last week.
The downward interest is still relevant among market participants, but the pivot point at 1.3570 is putting pressure on sellers, which leads to a reduction in the volume of short positions.
Short positions or Short means sell positions.
* Oversold market – a situation where prices have fallen too low and quickly. In this case, we are talking about the pound sterling, which has lost almost 260 points from the value in a short period of time.
August 24 economic calendar:
Today, the publication of data on US new home sales for July is expected, where it is expected to rise by 3%.
The data is positive, but it is assumed that the market will continue to trade based on technical analysis.
New home sales reflect the volume of new home sales in the United States in monetary terms in the reporting month. The analysis takes data on sold single-family homes, this statistic does not include apartment buildings. Also, houses built by the owners of land plots and houses built for rent are excluded from the assessment. The report is prepared by the National Association of Realtors of the USA.
Trading plan for EUR/USD on August 24:
The corrective movement is still taking place in the market, but there was a slight stagnation within the 1.1750 level. If the price is kept above 1.1755, growth will likely to be prolonged to the level of 1.1785, but the correction may well end.
It is worth noting that the downward cycle from the beginning of June is still relevant in the market, where the existing correction is part of it.
Trading plan for GBP/USD on August 24:
The pound managed to partially restore its positions during the correction, but the downward cycle is still relevant. Therefore, the correction is highly likely to be completed soon. The role of resistance can be played by the levels of 1.3750 or 1.3800, where an increase in the volume of short positions is possible.
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.
Golden Rule: It is necessary to figure out what you are dealing with before starting to trade with real money. Learning to trade is so important for a novice trader because the market is constantly dynamic and it is important to understand what is happening.
