EURUSD picture changed from neutral-negative to neutral-positive. As we previous mention a break and close above 1.1430 on the 4H chart was needed to change the picture. Although is too early to applause this rally, as this was due to lack of liquidity from last week’s short trading and the continuing government closure in the US. The dollar DXY is standing in a triangle that could break out on either ways and changed the EURUSD picture once again or help it to advance further.

As for this week markets will be on new year’s holiday mood and liquidity expected to remain low again. On the economic calendar we have on Thursday the U.S. ISM manufacturing PMI with expectations pointing lower. On Friday, we have the European Markit service PMI with expectations unchanged, European CPI with expectations pointing lower at 1.8% down from last 1.9% and European producer price index also lower at 4.1% down from last 4.9%, later in the U.S. the nonfarm payroll number will be release and expected at 178K

Technical, the picture is neutral-positive. Our traders closed all their Buy positions ahead of new year’s uncertainty and possible price relocation. They are now looking for a solid break above 1.1496 (50% Fibonacci level) in order to buy again and target profits around 1.1800. Alternative, if range will persist new buy position could be reopening at 1.1346 (23.6%) and 1.1220 (0%)

 

 

 

GBPUSD traded somehow higher last week and this was due to the same reasons, as we mention above, to the lack of liquidity and the U.S. government closure. Apart from this the holidays in the U.K. gave GBP a breath after no news came out from Brexit talks. As for this week on the economic calendar we have on Wednesday, the U.K. Markit manufacturing PMI with expectations pointing lower. On Thursday, PMI construction expected lower and on Friday, Markit service PMI expected higher as for this pair’s counterparty we mentioned above that on Thursday the U.S. ISM manufacturing PMI expected lower and on Friday, the nonfarm payrolls expected at 178K.

Technically the pair is neutral. After pair was changed to neutral from negative, traders may cautiously start buying the pair at 1.2645 (23.6% Fibonacci level) , targeting profits around 1.2800

 

 

For more detail economic calendar events please visit our live economic calendar on: 

https://10tradefx.com/economic-calendar/

 

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