08.12.202110:20 Forex Analysis & Reviews: Trading plan for starters of EUR/USD and GBP/USD on December 8, 2021

Here are the details of the economic calendar for December 7, 2021

The market is under the control of speculators since even positive data on European GDP cannot change its mood. The third estimate of eurozone GDP for the third quarter reflected a slowdown in economic growth from 14.2% to 3.9%, while the previous two estimates showed a slowdown to 3.7%. The divergence of expectations did not become a catalyst for the growth of the euro, on the contrary, speculators continued to increase the volume of short positions.

Analysis of trading charts from December 7:

The EUR/USD pair showed an upward interest again during the price recovery relative to the correction, where the level of 1.1227 serves as the pivot point variable. Based on the price action in 24 hours, we can say that there is speculative interest in the market, which led to the emergence of a V-shaped formation.

The GBP/USD pair slowed down the downward cycle in the area of the local low (1.3194) on November 30, where there was a stagnation in the range of 1.3208/1.3288.

On the daily chart, the quote is within the local low of 2021. This is a positive signal for a downward trend, which may lead to a subsequent recovery relative to the upward trend.

December 8 economic calendar:

A number of speeches by the ECB chairmen are scheduled today, which may put pressure on speculators and cause new price hikes.

8:15 Universal time - ECB President Lagarde to deliver a speech

8:30 Universal time - Speech by the ECB representative, Mr. De Guindos

11:30 Universal time - Speech by the ECB representative, Mr. De Guindos

13:10 Universal time - Speech by the ECB representative, Enria

13:10 Universal time - Speech by the ECB representative, Schnabel

America's data on open vacancies will be published today at 15:00 Universal time, where they predict a reduction from 10,438 thousand to 10,369 thousand. Thus, we can talk about a noticeable reduction in the number of open vacancies, which will be interpreted as a deterioration of the situation in the US labor market. This may lead to local dollar sales. It is worth considering that this will only be a speculative manifestation of market participants.

Trading plan for EUR/USD on December 8:

In this situation, the level of 1.1300 acts as resistance, relative to which stagnation has arisen. So, in order for a subsequent increase in the volume of long positions to occur, the quote needs to stay above the level of 1.1310 in a four-hour period. Otherwise, the reverse will occur.

Trading plan for GBP/USD on December 8:

The side channel in the range of 1.3208/1.3288 will be completed soon. It can be assumed that the process of accumulation of trading forces, expressed in a flat, will lead to an acceleration in the market.

In this situation, the most appropriate trading tactic is considered to be the method of breaking one or another border of the established range.

Trading recommendations:

Buy positions should be considered after holding the price above the level of 1.3290 in a four-hour period.

Sell positions should be considered after holding the price below the level of 1.3190 in a four-hour period.

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.