Energy crisis in Europe puts pressure on the market

Economic calendar details for September 6,
The further escalation of the energy crisis in Europe is putting pressure on the market, which does not allow the euro to enter a full correction.
German Chancellor Olaf Scholz yesterday said the energy crisis will last for several more years. This statement caused an increase in the decline of the euro.
Meanwhile, the UK Construction Purchasing Managers’ Index (PMI) released, rose to
9.2 instead of the expected drop from
8.9 to
8.0. However, the market ignored the statistics.
During the US session, the US Services Purchasing Managers’ Index (PMI) was released, falling more than expected from
7.3 to
3.7. Again, there is no response to statistical data.
Chart Analysis September 6 Trading
The EURUSD currency pair is attempting to extend the downtrend with several attempts by traders to sustain below 0.9900 on the daily timeframe. There is no clear overtime signal for the Tuesday period.
The GBPUSD currency pair, after a brief pullback, quickly returned to the 2020 domestic low (1.1
10). This move shows the continued bearish mood among traders in the market.
It should be noted that the pound sterling is positively correlated with the euro. Therefore, we observe identical cycles in the market.
Economic Calendar September 7,
Today is scheduled to release the third GDP estimate of the Eurozone, where there will be no market reaction if the data coincides with the two previous estimates . If there is a discrepancy in the statistical data, speculative activity may occur depending on the indicators.
Hourly Target:
EU GDP – 09:00 UTC
Trading Plan for EUR/USD on September 7
Market participants still expect the price to hold below 0.9900 on a daily basis day. This development will show the possibility that the euro will continue to weaken towards the 0.9500 level. It should be noted that the 0.9850 move is hindering the bearish cycle. Therefore, a signal to confirm the downward movement will be received after the failure.
Bull scenario considers failure to sustain price beyond control values. In this case, another rally is possible, with the price back above par.
Trading Plan for GBP/USD September 7
For a long term downtrend extension signal to appear, the quote must hold firmly below 1.1
00 on the daily timeframe.
Otherwise, a recovery from the 2020 lows cannot be ruled out with the next range of 1.1
What is displayed in the trading chart?
Candlestick chart view consists of white and black light chart rectangles, with bars at the top and bottom. By analyzing each candle in detail, you will see its characteristics in a relative period: opening price, closing price and maximum and minimum prices.
Horizontal levels are price coordinates, related to a possible stop or reversal price. These levels are called support and resistance in the market.
Circles and rectangles are marked examples where the price of the story takes place. This color selection indicates horizontal lines that can put pressure on future quotes.
Up/Down arrows are reference points for possible future price direction.

Relevance 10:00 2022-09-08 UTC 2 The Company does not provide investment advice and the analysis performed does not guarantee results. The market analysis published here is intended to raise your awareness, but does not provide guidance for making a trade.

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