Here are the details of the economic calendar from August 17:

Yesterday, the UK reported on the labor market, where the indicators were not as unambiguous as expected. The unemployment rate declined from 4.8% to 4.7%, and employment rose by 95 thousand. At the same time, applications for unemployment benefits fell by only 7.8 thousand, with a forecast of a decrease of 180 thousand.

Market participants were only upset by the data on applications for benefits, which led to ignoring all other indicators and reducing the value of the pound sterling.

In Europe, the second estimate of GDP was published in the second quarter, where the indicators came out worse than the first estimate of 13.7% - - - > 13.6%. This led to the euro's weakening.

During the US trading session, America's retail sales data were published. The growth rates of which slowed down from 18.0% to 15.78%, while the forecast of a decline to 11.5%.

Diverging expectations stimulated dollar positions in the market.

Analysis of trading charts from August 17:

The EUR/USD pair has restored its downward course relative to the recent correction. The resistance level is 1.1800, where there was a change of trading interests.

During an intense decline, market participants returned to the base area of 2021 – 1.1700, where another stagnation occurred.

The trading plan from August 15, 16, and 17 considered the scenario of a price rebound from the level of 1.1800, indicating a subsequent downward move in the direction of the support level of 1.1700. The trading recommendation coincided by 100%.

The GBP/USD pair managed to leave the sideways movement of 1.3800/1.3885, breaking through the lower border. As a result, an inertial movement appeared, which led to a decline towards the level of 1.3725.

Trading tactics for the breakdown of one or another border of the established side channel gave its results. Traders managed to enter the market at the most optimal moment, taking most of the downward momentum from the market.

* The resistance level is the so-called price level, from which the quote can slow down or stop the upward movement. The principle of constructing this level is to reduce the price stop points on the history of the chart, where the price reversal in the market has already occurred earlier.

* A change of trading interests is when there is a change of direction in the market from ascending to descending or from descending to ascending.

August 18 economic calendar:

Today, inflation data in Britain has already been published, where consumer prices declined from 2.5% to 2.0%, which is higher than the 2.3% forecast.

The market did not react when the statistics were released.

Europe's inflation data will be released at 9:00 Universal time, where it is predicted to rise from 1.9% to 2.2%. However, the market has long considered this fact in the form of a preliminary estimate.

Trading plan for EUR/USD on August 18:

The support level of 1.1700 puts pressure on sellers, which leads to stagnation and a slight pullback.

The downward interest is still observed among market participants. The subsequent growth in the volume of short positions will occur if the price is kept below the level of 1.1690. This scenario indicates a subsequent recovery in dollar positions relative to the medium-term upward trend of the euro.

Trading plan for GBP/USD on August 18:

A slight pullback was replaced by stagnation within the levels of 1.3725/1.3760. The local oversold conditions are felt in the market, but this does not cancel the downward mood. The subsequent growth in the volume of short positions is expected to be below 1.3715, which may well open the way towards the range of 1.3680-1.3570.

• Short positions or Short means sell positions.
• Long positions or Long means buy positions.

An oversold market is a situation when prices have fallen too quickly. In this case, we are talking about the euro and the pound, which have lost almost 100 points in a short period of time.

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 individual candle in detail, you will see its characteristics of a relative time period: the opening price, the closing price, the 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 dynamics and it is important to understand what is happening on it.