FX.co ★ EUR/USD and GBP/USD: Trading plan for beginners on May 30, 2023

Details of the economic calendar on May 29

There were no significant events in the macroeconomic calendar, as it was a holiday in Europe, the United Kingdom, and the United States. This led to a decrease in trading volumes, which had a negative impact on market volatility.

Analysis of trading charts from May 29

EUR/USD continued to decline after a brief stagnation. Keeping the price below the 1.0700 level became a technical signal for an increase in short positions on the euro, leading to local speculation.

GBP/USD temporarily stalled around the 1.2350 level, largely due to the non-working day in the United Kingdom and the United States.

Economic calendar for May 30

Today, the publication of the S&P/Case-Shiller Home Price Index Composite-20 in the United States is expected, and forecasts indicate a decline. If the negative forecast is confirmed, it could trigger a reduction in dollar positions, which are currently overbought.

EUR/USD trading plan for May 30

In the current situation, there is a momentum-speculative movement, which has led to the continuation of the corrective cycle. If market participants continue to ignore the technical signal of oversold euro, the exchange rate may continue to decline and reach a support level around 1.0500/1.0550.

However, such speculative scenarios are often accompanied by a rebound. Therefore, a sharp reduction in short positions is possible, which will temporarily strengthen the euro's exchange rate.

GBP/USD trading plan for May 30

Market participants still maintain a bearish sentiment, but to confirm the prolongation of the corrective cycle, the exchange rate must remain below the 1.2300 level. Otherwise, we may observe significant fluctuations around the 1.2350 level.

What's on the charts

The candlestick chart type is white and black graphic rectangles with lines above and below. With a detailed analysis of each individual candle, you can see its characteristics relative to a particular time frame: opening price, closing price, intraday high and low.

Horizontal levels are price coordinates, relative to which a price may stop or reverse its trajectory. In the market, these levels are called support and resistance.

Circles and rectangles are highlighted examples where the price reversed in history. This color highlighting indicates horizontal lines that may put pressure on the asset's price in the future.

The up/down arrows are landmarks of the possible price direction in the future.