EURUSD continues trading in range with many unsuccessful attempts to break the 1.1400 level. European steady economic indicators were over shadowed by the unexpected positive U.S. GDP, which resulted in a price retracement back to the week’s lower levels. The unsuccessful meeting between the U.S. president Trump and North Korea’s Kim Jong-un, forced investors and traders back to safe heaven US dollar and this weighted on EURUSD price.
For this week’s economic calendar, we have on Monday, the European producer price index with expectations pointing higher at 0.4%. On Tuesday, German and French Markit PMI is expected unchanged, and the U.S. ISM non-manufacturing PMI positive at 57.3. On Thursday, European Gross domestic product is expected to be unchanged at 1.2% and later the ECB will release their minutes that will be followed by a press conference. We do not expect any changes on the policy at this meeting, although the dovish tone and growth warnings of Mr. Mario Draghi as always will have negative impact on Euro. On Friday the US nonfarm payroll is expected lower at 185K down from surprised 304 last month, a close look at average hourly earnings is advised as the positive expected outcome of 3.3% may cover the lower number of nonfarm payroll and drive the pair lower.
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 and above the 23.6% Fibonacci level. This gives a more positive technical outlook. Alternative a break below 23.6% and trend line could accelerate losses and retest strong support of 1.1200
GBPUSD continued trading higher last week as investors remain confident that a hard Brexit option is waived, and the coming parliamentary voting scheduled for March 9th will be favored an extension of 21 month for the UK departing from EU. By the end of the week we have seen a small price retracement from the highs, this was due to some profit taking from traders and investors that are still trading the pair with caution ahead of March 9 voting.
On the economic calendar we have on Monday, Markit construction PMI with expectations pointing lower at 50.2. On Tuesday Markit services PMI expected higher at 50.2 and later the same day BOE’s governor Carney speech expected to bring some positive move as always. On Friday consumer inflation expectations and industrial production expected unchanged.
Technically the pair is positive. Traders took profits at all their positions at 1.3200 and they are now starting to open new positions with any chance of lower move. As per our new Fibonacci levels, first buy level is the 1.3200 (23.6%) with take profit at 1.3341. If the pair will continue trading higher then trading style will change and instead of buying the dips, will start buying the break out levels of 1.3341 and target profits at 1.3567 levels seen the day after the Brexit voting took place.
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.