Trading plan for EUR/USD and GBP/USD on August 26, 2021

The US dollar continued to lose its position although durable goods orders did not drop as much as expected. It is worth noting that the volume of orders has decreased not by 0.2%, but only by 0.1%. Nevertheless, this is still a decrease in the volume of orders, so retail sales may still decrease. In this case, it's not surprising that the US currency was getting cheaper.

Durable Goods Orders (United States):

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Today, the direction of movement in the currency market may change dramatically under the pressure of data on applications for unemployment benefits. So, the number of initial requests should be reduced by 8 thousand, and repeated by 40 thousand. In other words, we are talking about further improvement of the situation in the labor market. This is exactly what the Fed needs to start gradually curtailing the quantitative easing program. The very possibility of such a prospect will contribute to a noticeable increase in the US dollar.

Repeated claims for unemployment benefits (United States):

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The EUR/USD pair is moving according to the correction course from this year's local low. The resistance level of 1.1780 stands in the way of buyers, relative to which there was stagnation. To prolong the correction, the quote needs to stay above the 1.1800 level for a four-hour period. Otherwise, a rebound may occur towards 1.1700.

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The GBP/USD pair reached the level of 1.3775 during the correction, where there was a stop. An increase in the volume of long positions is possible if the price is kept above the level of 1.3785, towards the range of 1.3800-1.3810. The development of the decline will be considered if the quote is kept below the level of 1.3735, in the direction of 1.3700.

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The material has been provided by InstaForex Company - www.instaforex.com

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