FX.co ★ Trading plan for starters of EUR/USD and GBP/USD on September 7, 2021

Here are the details of the economic calendar for Sept 6:

The economic calendar was empty yesterday. There were no published statistics for Europe and Britain. At the same time, the United States had its holiday in celebration of Labor Day. As a result, trading volumes were reduced and the market stood still. At such a moment, it is better not to trade due to the fact that the volatility of trading instruments (EUR/USD and GBP/USD) is very low. t is quite problematic and unprofitable to make money on minimal price changes.

Analysis of trading charts from September 6:

The price rebound from the resistance area of 1.1880/1.1905 returned the EUR/USD quote to the level of 1.1855, where there was a slight stagnation. In fact, the quote is still within the deviation of the resistance area. This puts pressure on buyers, which makes it impossible to resume the corrective course from the beginning of 2021.

Thus, the trading recommendation from September 3 and 6 regarding the downward movement relative to the resistance area is still relevant.

The GBPUSD pair reached the resistance level of 1.3880 during the upward movement, against which there was a reduction in the volume of long positions and as a result, the price rebounded.

The decline from the resistance level is still relevant, so the September 6 trading recommendation considered sell positions.

* 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.

September 7 economic calendar:

In terms of the economic calendar, the third estimate of Europe's GDP in the second quarter has been published today, which can confirm the economic growth of 13.6%. The factor is positive, but it is worth considering that we only have confirmation of the previous assessment. Thus, the market has already taken into account the statistical data in the quote.

Trading plan for EUR/USD on September 7:

The resistance area of 1.1880/1.1905 continues to put pressure on buyers. This led to a stop of the upward movement and as a result, the first signal of a possible change of direction. The price being kept below 1.1850/1.1860 on a four-hour period will increase the chances of sellers for a subsequent decline towards the range of 1.1800-1.1760.

An alternative scenario of the market development considers an amplitude move along the resistance area.

Trading plan for GBP/USD on September 7:

The pullback from the resistance level of 1.3880 was replaced by a slight stagnation, while the downward interest still takes place in the market. To strengthen the sell positions, the quote needs to stay below the level of 1.3815, which will automatically lead to a decline towards the level of 1.3800. In this case, an increase in the volume of short positions is possible, which will open the way towards the level of 1.3735.

An alternative scenario of the market development will become relevant if the price is kept above the level of 1.3905. In this case, the upward cycle from 1.3600 is prolonged towards the psychological level of 1.4000.

Psychological levels are round values (1.2000, 1.3000, 1.4000, 1.5000, etc.) that serve as key coordinates in the market that traders pay special attention to. These levels are often used as support or resistance.

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.

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 dynamic and it is important to understand what is happening.