EURUSD stack in a bearish mode during last week’s trading session. This was mainly due to the Italian budget discussions between Italy and EC, and, due to a more positive and hawkish outlook in FED’s Powell declarations about future rate hikes expectations. The nonfarm payroll number even though came out much below expectations, did not manage softening the USD. In the coming week, economic calendar is light for EURUSD with only two important events, on Thursday when ECB will release their monetary policy accounts report and later, on the same day the US consumer price index is expected to tick higher at 2.3%.
Technically the pair in neutral. Our traders continue to trade the Fibonacci chart, using the trading style “buying into the dips”. Buy positions at 1.1674 (23.6%), 1.1604 (38.2%) and at 1.1548 (50%) were opened and targeting profits around 1.1800. the pair now is flirting with the 61.8% Fibonacci level (1.1500), if fail to recover at this level and break below, new lower levels will come back on the table with the possibility of 1.1300 level to be reached soon.
GBPUSD turned positive last week after Brexit talks in Brussel between, the UK and EU came out positive and with declarations from both camps that a trade deal is going to be achieved in the next few weeks. In addition, PM Theresa’s victory in conservative party conference gave a fresh breath to GBP. This week apart from Brexit news and especially the Irish boarder negotiations we have on Wednesday the UK gross domestic product with expectations pointing lower at 0.2%
Technically the pair is positive. A retracement on the downside at 38.2% Fibonacci level (1.3047) and 50% (1.2978) on the 4H chart gave traders the opportunity to start buying once again and targeting profit at 1.3300
For more detail economic calendar events please visit our live economic calendar on:
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