The economic calendar for November 23, 2021 is as follows:
Speculators spent yesterday monitoring business activity indices.
Let’s examine them in detail for each country.
At 9:00 a.m. U.S., Europe released its manufacturing index, which unexpectedly showed growth, confusing the markets. Locally, the euro quote rose, but then fell back to its previous level, resuming the downward trend. The output index grew from 58.3 to 58.6 points, vs a predicted fall to 57.5 points. Simultaneously, the service sector business activity index rose from 54.6 to 54.0 points, instead of falling.
At 9:30 UTC, the UK issued similar statistics, although the indices indicated growth rather than decline. The manufacturing index rose from 57.8 to 58.2, vs an estimate of 57.1. The country’s service sector activity continued to drop, albeit not as much as expected. In fact, it dropped from 59.1 to 58.3 points instead of 58.6.
The pound sterling ignored the statistical disparity and continued to fall.
Index data from the US came in somewhat worse than expected at 14:45 UTC, weakening dollar positions locally.
The manufacturing activity index confirmed expansion estimates. It rose from 58.4 to 59.1. But things aren’t so easy in the service sector. The index was projected to rise from 58.7 to 59.0, but declined to 57.0.
Chart analysis for November 23:
Around 2021, the EUR/USD pair slowed its downward trend. As a result, the price stayed between 1.1225 and 1.1275. Despite the momentary halt, sellers dominate the market, as seen by a steady downward trend since early June.
After a brief pause, the GBP/USD pair resumed its downward trend, remaining below the 1.3400 support level. As a result, the quote accelerated downward, piercing the local low of November 12 – 1.3350.
The trading plan for November 23 projected a price decline towards 1.3350. A trade tip might bring us a profit of 25-30 points, or $ 25-30 with a 1 Installot transaction volume.
On November 24, 2021, trading plan for EUR/USD and GBP/USD
Today at 13:30 UTC, the US Bureau of Economic Analysis will release its third quarter GDP estimate, which ranges from 2.0% to 2.10%. This is a plus.
Parallel to this, statistics on durable goods orders in the country will be released, with a 0.3% growth expected. This measure is regarded one of the greatest economic indicators of consumer activity. Thus, rising durable goods orders may help the US dollar.
There will also be data on US unemployment claims, which are expected to decline somewhat.
Statistic details:
Initial benefit applications may reduce from 268 thousand to 260 thousand.
The number of repeated benefit applications may decline from 2,080 to 2,033.
The data was released a day early due to the US Thanksgiving holiday on November 25.
Trading plan for November 24th:
The price fluctuation in the region of 1.1225/1.1275 is expected to last for a while. This leads to a trade force accumulation.
When expectations align, the best trading strategy is to break through one of the range’s boundaries.
Trading suggestions:
Consider buying after the price rises above 1.1280.
Sell positions should be explored after 1.1220 is breached.
Since the quotation hit the year’s low, the volume of short positions has decreased. Following this, prices naturally rose, then slowed. To extend the downward cycle to new price levels, the quote must stay below 1.3350 for four hours. If not, a pullback to the previous level of 1.3400 is possible.
On November 24, 2021, trading plan for EUR/USD and GBP/USD
What do the trade charts show?
A candlestick chart is a set of light rectangles with sticks on top and bottom. Each candle has relative period characteristics: opening, closing, maximum, and minimum prices.
Prices might stop or reverse at horizontal levels. Markets call these levels support and resistance.
Circles and rectangles show where the storey unfolded. This colour choice signals future strain on the quote.
The up/down arrows show the future price direction.