EURUSD traded higher last week after European economic indicators surprisingly came out more positive than it was expected. On the US dollar side even thought NFP came out much better than expected, the disappointing average hourly earning and ISM manufacturing PMI was a solid fundamental indicator that helped the pair to trade and close higher on the week. The European parliamentary voting continues during last week with results showing socialist rise in E.U. and leaders asking for anti-European coalitions. This will be negative fundamental for Euro.
As for this week we do not have any major economic events for Euro. As for the US dollar we have on Friday, consumer price index pointing higher at 2.1%. We are expecting the pair to trade within technical levels, supported from last week’s fundamentals and economic releases.
Technical, the picture is negative. The temporary rejection of the fake break out of multi-month strong support at 1.1185 is putting the pair back into the down trend channel and range of 1.1300 – 1.1100. Our traders maintaining all buy positions open at 1.1500, 1.1275 and 1.1185 targeting profits at 1.1500 using trailing stops for each trade above 100 pips profits. A break and close below 1.1138 on the 4H chart this week will force traders using stop losses at 1.1080
GBPUSD traded higher last week after local elections results showed that pro-European parties won more seats in England’s councils. Labour had lost 83 seats overall, and the Conservatives had lost 894. The winners were smaller parties, principally the pro-European Liberal Democrats, who had gained 515 seats. The Green Party picked up 129 more seats; independent candidates were up 396 seats. Former Conservative Party Chairman Eric Pickles added his name to the list of politicians who’d countenance a second referendum to resolve Brexit. As for the coming week due to the lack of economic indicators from both the UK and the US we are expecting the pair to move on any new political party declaration on Brexit.
On the economic calendar this week we have on Thursday gross domestic product with expectations to remain unchanged at 1.4%.
Technically the pair is neutral. The sharp upside move and the close above 38.2% Fibonacci level might change the picture to positive, with the pair in track to retest the strong resistance of 1.3330. Our traders maintain open their buy positions at 1.3200 (23.6% Fibonacci level), 1.3123 (38.2% Fibonacci level) targeting profits at 1.3330, while last week’s positions at 1.3062 (50% Fibonacci level) and 1.2996 (61.8% Fibonacci) have taken profits. We are expecting our traders to continue buying the dips at 1.3062 (50% Fibonacci level) and 1.2996 (61.8% Fibonacci) using trailing stops at 100 pips profit but always targeting profits at 1.3330.
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.