The light economic calendar for this week will keep the Euro moving with positive momentum within the trading range with its counter party, USD. On Thursday the ECB monetary policy meeting accounts are due to be release without any changes to the policy, and on Friday the German Harmonised index of consumer prices is expected to remain unchanged at 1.5%. As for the USD, the disappointing number from the non-farm payroll last week pushed the dollar lower. This reaction will be limited because the 103K number in combination with last month’s 300K makes an average of 200K, a number that is in line with the FED’s dashboard of 200K per month. Wednesday’s consumer price index is expected to jump from 1.8% to 2%, this figure will boost possibilities for a more hawkish FOMC in the coming months and will be seen as positive for the USD.
Technical analysis puts the EURUSD pair into a range trading trend. A trading style to buy into dips should be maintained. Keep open buy position at 1.2280, take profit 1.2500, trailing stop above 1.2400, a strong buy is at 1.2184, take profit 1.2500, trailing stop above 1.2280.
The light economic calendar for the UK economy will keep GBP in bullish momentum. Even though last week’s PMI was lower than expected, this was not enough to disappoint the bulls. On Wednesday, manufacturing production is expected to be higher at 0.5%, up from 0.1% last month. Once again, the pair GBPUSD will be in the hands of USD counterparty, and as mentioned above, the most important event is the consumer price index of US.
Technical analysis maintains a bullish stance and traders should continue to buy into dips. We keep open position with buys at 1.4060, take profit 1.4200, trailing stop above 1.4150, and new buy order is in place at 1.3923, take profit 1.4200, trailing stop above 1.4060.
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