EURUSD traded lower last week after German and European economic indicators came out weaker than expected and confirm once again that European growth is slowing down. On the other side of the Atlantic the US retail sale came out much more positive than expectations and this pushed the pair even lower. A short week with lack of liquidity, due to eastern holidays, was another reason behind the calm and slow move. As markets will be back to normal from Tuesday, we are expecting volatility to resume.

On this week’s economic calendar, we have on Wednesday, the German IFO business climate with expectations pointing higher at 99.9. On Thursday, German Gfk Consumer confidence expected at 10.4 and the US durable goods orders higher at 0.4%. On Friday the US gross domestic product expected lower at 1.8%.

Technical, the picture is neutral. The sharp rejection just below 38.2% Fibonacci level confirmed that the downtrend move is resumed and a retest of 1.1185 is back on the game in the coming sessions. Overall picture will change once we see a clear move either above 1.1350 or below 1.1185. Our traders are keeping open their buy positions at 1.1500 and 1.1275 (23.6% Fibonacci) targeting profits around 1.1565.

 

 

GBPUSD traded lower last week on the lack of Brexit outcome news as the UK week of eastern holidays is under way. The positive economic indicators from the UK were overshadowed by the US dollar strength and this pushed the pair lower. This week we are expecting volatility to resume as the 2 leaders will resume their negotiations and bring to the parliament new deals for voting. As this week brings nothing on the UK Economic calendar, any move will be due to the US dollar economic indicators and Brexit announcements.

Technically the pair is positive to neutral. The positive to neutral picture is been threatened to change into negative, by the break out of the triangle formation and the close below the 61.8% Fibonacci level on the 4H chart. If the pair will continue trading below this level in the coming week, we can see lower levels and possible retesting of 1.2800 level. Alternative, if uptrend resumes and break above the triangle will put the pair back into positive picture.  Our traders maintain open their buy positions at 1.3200 (23.6% Fibonacci level), 1.3123 (38.2% Fibonacci level), 1.3062 (50% Fibonacci level) and 1.2996 (61.8% Fibonacci) targeting profits at 1.3330.

 

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

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

 

 

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