Here are the details of the economic calendar for May 28:
The economic calendar during the previous day was focused on American statistics, which published the second estimate of the US GDP for the first quarter, reflecting the economic growth of 6.4% (y/y).
It is worth considering that we expected the second estimate to reflect the growth of 6.5%, and in the end, we got the same results as the GDP first estimate of 6.4%.
GDP data did not serve as a stimulus for the growth of the dollar.
Along with the GDP, data on US applications for unemployment benefits were also released, where it showed a decline in their volume.
Details:
The volume of initial applications for benefits fell from 444 thousand to 406 thousand.The volume of repeated applications for benefits fell from 3 738 thousand to 3 642 thousand.Applications reflect the number of citizens who are not currently working and receiving unemployment benefits. This indicator is considered the state of the labor market, where the growth of the indicator negatively affects the level of consumption and economic growth.
To put it simply, an increase in the number of applications leads to a weakening of the national currency, while a decrease leads to strengthening.
In this case, the US dollar received local support from the reduction in the volume of claims for benefits.
Analysis of trading charts from May 27:
The EUR/USD pair had a looped oscillation – an amplitude price fluctuation in the range of 1.2180/1.2210, which was very similar to the cumulative effect before an acceleration.
Trading recommendations from May 27 considered a possible process of slowing down and even rebounding prices, referring to the repetition of the natural basis of May 20 and 24.
The GBP/USD pair does not change its traditions and continues to trade within the sideways channel 1.4100/1.4240. During the last trading day, the price rebounded from the lower border area, which led to an upward cycle.
The trading recommendation from May 27 considered the probability of a possible price rebound from the border of 1.4100, where, based on a logical sequence, it was possible to enter buy positions, which would bring profit as a result.
Trading recommendation for EUR/USD and GBP/USD on May 28, 2021
Today, any particularly important statistical indicators will not be published, so the market will be more focused on technical analysis.
Looking at the EUR/USD trading chart, it can be seen that expectations regarding a possible acceleration coincided. There was a local breakdown of the lower border of the price range of 1.2180/1.2210.
It is worth noting that the main volume of short positions (sell positions) will arise after the price has been kept below the level of 1.2160, which reflects the low of May 20 and 24.
If the level of 1.2160 is not broken, another stagnation may occur and, as a result, a price pullback along an upward trajectory.
As for the trading chart of the GBP/USD, it shows that the quote approached the upper border of the side channel 1.4100/1.4240, which leads to a reduction in the volume of long positions (buy positions). We can assume that the logical basis associated with the amplitude fluctuation within the range is still relevant, so traders will consider the rebound method.
There will be fundamental changes in the market if the price is held outside the other border of the side channel 1.4100/1.4240, considering the subexpression of breakdown on a four-hour or daily time frame.