EUR/USD

Another week and the overall picture of EURUSD remains unchanged within the same price range. Starting the week with a huge downside move and retesting lows at 1.1581 is mainly due to a hawkish speech by FED’s Jerome Powel this won’t last long as US president Trump jumped into the game and commented that he was against the FED’s policy on hiking rates and adding that a strong dollar is not good for the US economy. For this week it is expected to be the same picture, Ups and Downs, as there are some serious meetings between EC president Junker and US president Trump to discuss about tariffs on European car makers and secondly also another important meeting between US/China to also discuss the already imposed tariffs and the new tariffs on all Chinese goods proposed last week from US president. As for the economic calendar starting on Tuesday, German Markit PMI is expected to be unchanged at 54.8 and European Markit PMI expected to be lower at 54.6, down from 54.9 last month. Later, on the same day, US Markit PMI is expected also to be lower at 56 down from last 56.2. On Wednesday, German IFO business climate is expected to be lower at 101.7 and the US home sales lower at 0.670 million. Thursday is the big day for the EURO as the ECB meeting will release their minutes. A no change in interest rate is obvious, although the speech that will follow is the key for EURO’s direction. When the QE will be removed and what are the future steps on normalizing interest rates will be the main points of the press conference that will offer traders a clear picture. Friday US Gross domestic product is expected to hit the highest level in last 4 years, expectations are for 4%, a much higher number than the last 2%.

Technical EURUSD is neutral to positive. Range trading is giving traders opportunities to open and close the same positions on the same levels. Our Traders maintain open buy positions at 1.1734 targeting 1.1853 to take profit, and place new pending orders buy at 1.1610 with take profit at 1.1853 trailing stop above 1.1722

 

 

GBP/USD

 

Failed Brexit talks continue to push GBP lower and lower, during last week until finally on Friday the pair took a breath and recovered some losses, recovery was mainly due to US Dollar slight and, also because of some news that Theresa’s white paper could be the key to coming to a trade agreement with EU. Although caution and alert need to be in place because the down side could be to resume as UK Parliament is close to collect the 48 letters saying that PM Theresa May is a No confidence. This could bring new political chaos in the UK and will have huge negative impact on GBP. This week will not offer any economic calendar event for GBP, although, traders are bracing for next week’s supper Thursday where it is expected to see a rate hike from BOE.

Technical the pair is neutral. Therefore, traders maintain open positions buy at 1.3365 take profit at 1.3471 and position buy at 1.3223 take profit at 1.3471 with trailing stop above 1.3310

 

 

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