EURUSD downside pressure continues. Even after a dovish FOMC the pair did not manage to recover losses. This is confirming once again that pair is still affected from UK parliament’s decision due on 11th of December. On the other hand, a stall in Europe’s CPI number from last week and Germany’s weak manufacturing PMI added more downside pressure for the pair. As for this week traders and investors are closely monitoring the G20 meeting and the decisions of US-China trade relation. Both US and China agreed to suspend recent tariffs, this will be a relief for US companies and equity markets, meaning that the dollar will become softer at least for now. On the economic calendar we have on Monday, the US ISM Manufacturing PMI with expectations marginally higher. On Wednesday, German and European Markit services PMI expected to be unchanged and US ADP employment lower at 187K down from last 227K. On Friday, European gross domestic product expected to be unchanged and the US Nonfarm payrolls expected lower at 205K down from last 250K.
Technically, the pair is negative to neutral. Our traders maintain Buy positions 1.1500, 1.1320 and 1.1220 targeting profits around 1.1500. Pair is expected to continue range between the 100% Fibonacci level at 1.1220 and 1.1500 (50%) Fibonacci level. A break and close above 1.1430 on the 4H chart are needed to change the picture to neutral/positive. Alternatively, a break and close below 1.1300 will turn the picture to negative and retesting lows of 1.1200 will be on the cards once again.
GBPUSD did not react at all, from last week’s Eurogroup decision and the signing of the Brexit agreement. The reason of downside move is due to the pending decision of the UK parliament for approving the signed agreement. Negotiations in UK Parliament are starting on the 4th of December ending at 9th of December. Voting will take place on the 11th of December. On the economic calendar this week we have on Monday the UK Markit Manufacturing PMI expected higher. On Tuesday, PMI construction expected lower. Pair will be in the faith of parliament’s outcome and expectations are for more downside move as traders and investors are prepositioning ahead of the parliament’s decision.
Technically the pair is neutral to negative. Our traders maintain open buy positions at 1.3135 (23.6%), 1.3063 (38.2%) and 1.2930 (61.8%) targeting profits at 1.3300. Buying the dips is the main trading style for now, we are expecting our traders to start aggressive buying the pair around 1.2700.
For more detail economic calendar events please visit our live economic calendar on:
*The material does not contain an offer of, or solicitation for, a transaction in any financial instruments. 10TradeFX accepts no responsibility for any use that may be made of these comments and for any consequences resulting in it. No representationor warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losing all your invested capital, so please make sure that you fully understand the risks involved.