Here are the details of the economic calendar from June 14:
Europe's volume of industrial production for April was released yesterday, where traders observed high rates again due to the effect of a low base. In particular, there was an increase from 11.5% to 39.3%.
The low base effect is when the growth rate of an economic indicator is explained by its extremely low starting indicator.
To simply put it, the effect of lockdowns on economic activity.
The reaction of the European currency to the data on industrial production may have been on the market, but it is worth noting that the euro strongly weakened at the trading day earlier (June 11), where the strengthening can be regarded as a pullback.
Important statistics were not published in the UK and the US.
Analysis of trading charts from June 14
The EUR/USD pair managed to rebound from the support point in the form of the price area of 1.2100, where the volume of short positions (sell positions) was repeatedly reduced.
Last Friday, the strategy of breaking through one or another border of the 1.2160/1.2200 was discussed, where the lower border was eventually broken, which led to a sharp decline to the predicted support area of 1.2100.
In simple terms, the current pullback (strengthening of the euro) is a rebound from the level of 1.2100.
The GBP/USD pair tried to break through the area of the lower border of the side range of 1.4100/1.4245, where the price level of 1.4080 serves as the signal coordinate.
The price being kept below the level of 1.4080 for an H4 interval is not fixed in the market, so the entry into the sell position is not carried out.
To put it simply, rebound tactics are still relevant among traders.
Trading recommendation for EUR/USD and GBP/USD on June 15, 2021
Today, the United Kingdom published its labor market data, where the unemployment rate declined from 4.8% to 4.7%, while employment rose less than the forecast +113 thousand instead of 150 thousand.
At the same time, applications for unemployment benefits fell by 92.6 thousand, which is quite a lot. The pound sterling is not in a rush to strengthen on the wave of positive background but is stuck in one place.
The United States will release its data on industrial production for May later, which is expected to rise. However, it is not excluded that the effect of a low base will be noticed again.
The May retail sales in the country, taking into account the year-on-year review, will also impress traders with their values, as we are likely to see a growth of over 50%.
It is difficult to say whether the market will react to the statistics on the United States due to the fact that the two-day meeting of the Federal Open Market Committee starts today, where investors, traders, and speculators will closely monitor the information space in anticipation of the results.
Looking at the EUR/USD trading chart, one can see the price rebound from the pivot area of 1.2100, where buyers managed to recover more than half of the decline from June 11. In this situation, it is possible to move towards the previously overcome level of 1.2160, where the price can slow down with a subsequent rebound.
As for the trading chart of the GBP/USD, an amplitude movement in the path of the lower border of the side channel can be seen, where at the same time, there is a process of accumulation of trading forces.
All traders closely monitor the coordinates of 1.4080, as keeping the price below it for an H4 time frame will lead to a breakdown of the side channel. If the volume of short positions (sell positions) reduces again, a natural price rebound is not excluded.