EURUSD A strong and bullish week for the pair and a break above the multi month resistance, and range. Traders were surprised by the last trading hours on Friday, when the pair declined 70 pips although this is not signal for resuming downside move at least for now. The sharp decline for a few hours before closing bell was mainly due to some profit taking. Fundamentals are pointing for farther upside trend, after the latest dovish FOMC and chairman Powell. Economic indicators are flat for now from both sides of the U.S and Europe, so the pair will mainly move technical until some new fundamentals will change the game.
As for this week’s economic events we have on Tuesday, the U.S. Producer Price Index with expectations unchanged at 2.7%, and a speech from the ECB’s president Draghi. On Wednesday, German Harmonized Index of consumer prices expected unchanged at 1.7% and the U.S. retail sales with expectations unchanged at 0.2%. On Thursday, the European consumer price index expected unchanged at 1.6%
Technical, the picture is positive. Our traders took profits on all positions last week around 1.1500 and they started buying the dips around 1.1500 (50% Fibonacci) and placing pending buy orders at 1.1433 (38.2% Fibonacci) targeting profits at 1.1567
GBPUSD closed last week much more positive after it broke a strong resistance of 1.2800. The move was mainly due to some minister’s declarations that Brexit is very possible to be delayed beyond March 2019, and, also helped from softer US dollar. For this week on Tuesday we have the Parliament Voting on PM Theresa’s Brexit deal. Parliament is divided on this deal and volatility on the pair is expected to be high during Tuesday’s Voting procedure.
On the economic calendar we will have on Wednesday the UK retail price index is pointing higher at 0.5% and Consumer price index remains unchanged at 1.8%. On Friday, UK retail sales expected lower at 3.5%
Technically the pair is positive. Our traders took profits on all their positions around 1.2800 and placed new pending buy orders at 1.2733 (38.2% Fibonacci) and 1.2633 (23.6% Fibonacci) and targeting profits higher at 1.2900.
For more detail economic calendar events please visit our live economic calendar on:
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