Here are the details of the economic calendar for December 29, 2021:
Yesterday, the macroeconomic calendar was almost empty again. Europe published its lending market data, where both the private and commercial sectors increased. The market did not react, as the data is not very important, and it is the end of the year. Meanwhile, the United States published an index of pending real estate sales, which rose by 0.6% during November. This indicator was not so interesting in the market.
The main incentive for speculators was the information background, where the media actively discuss the topic of new COVID-19 cases per day in the United States. So, fears of possible quarantine measures lead to local sales of the US dollar.
Analysis of trading charts from December 29:
Speculative price surges for the EUR/USD pair did not lead to dramatic changes. Market participants continue to move along the amplitude of the side channel 1.1225/1.1355, where a systematic reduction in the volume of long positions in the area of the upper flat border is regularly observed. The GBP/USD pair continued its upward cycle after a short stagnation. This led to the prolongation of the correctional course towards the local high on November 18.
Such a rapid price growth, paired with the already existing overbought status of the pound sterling, did not go unnoticed. As a result, the impulse was replaced by a stagnation-pullback. There is a corrective move from the pivot point 1.3170 on the daily chart, but despite the quite impressive scale, the downward trend remains.
December 30 economic calendar: Today, weekly data on applications for US unemployment benefits will be published, which is expected to rise slightly. Details of statistics: The volume of initial applications for benefits may remain unchanged at the level of 205 thousand. The volume of repeated applications for benefits may grow from 1,859 thousand to 1,868 thousand.
Trading plan for EUR/USD on December 30:
In this situation, the main tactic is the method of price rebound from the upper border of the flat. This move may lead to the recovery of short positions in the direction of 1.1300-1.1290. The scenario of a breakdown of the upper border will be confirmed in the market only after the price holds above the 1.1400 level in the daily period. Otherwise, the breakdown may be false.
Trading plan for GBP/USD on December 30:
Based on the overbought status and the variable resistance area of 1.3500/1.3510, it can be assumed that temporary stagnation may be replaced by a recovery process. This step may lead to a reversal towards 1.3400/1.3420. In turn, if speculation does not stop, and the quote remains above the level of 1.3520 in the H4 period, then it is impossible to exclude the subsequent inertial move towards the level of 1.3600.
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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