EURUSD traded in range and closed marginally higher last week mostly due to US dollar’s softening stance as trade war between the US and China is somehow eliminated after both presidents Trump and Xi Jinping declare a progress in last week’s talks. On the other hand, Euro remains under pressure as last week’s European economic indicators confirm the worries of ECB for slowing growth in the bloc.
For this week’s economic calendar, we have on Tuesday, German Gfk consumer confidence survey with expectation lower at 10.3 and FED’s chairman Powell speech. On Wednesday, the US durable goods expected lower at 0.2% and continuation of Powell’s speech. On Thursday, German harmonized index of consumer prices expected unchanged at 1.7% and US gross domestic product lower at 2.4%. On Friday European consumer price index expected unchanged at 1.1% and the US ISM manufacturing PMI lower at 56.2
Technical, the picture is neutral. Our traders keeping open their buy positions at 1.1500 (50% Fibonacci), 1.1400 and 1.1352 (23.6% Fibonacci) targeting profits around 1.1565
Pair retreaded higher and closed above the trend line. This could change the picture from neutral to positive if this week will break and close above the 23.6% Fibonacci level.
GBPUSD traded higher last week as investors remain confident that Talks between UK and EU will end up positive and avoid a hard Brexit option. Apart from this, the resignation of 3 labor party PMs last week it was taken positive from the markets, as their Leader Corby is losing ground on his opposition stance. Talks between UK and EU will resume this week and expectation of approve a 3-month delay are high enough to push the pair even higher.
On the economic calendar we have on Tuesday, the UK Inflation report and PM Theresa May speech. On Wednesday the UK parliament will vote on Brexit delay in case a no deal will be achieved. On Friday UK manufacturing PMI expected lower at 52.
Technically the pair is positive. Traders maintaining their long positions at 1.3027 (23.6% Fibonacci) and 1.2922 (38.2% Fibonacci) and continue buying into the dips at 1.2838 (50% Fibonacci) targeting profits at 1.3200. A good trading technic must be in place and take opportunity of the swings using trailing stops at 1.3050 for all open position in order to lock and maximize current profits.
For more detail economic calendar events please visit our live economic calendar on:
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