EURUSD traded higher last week after FED’s chair Powell speech where he opened once again the door for a rate cut as soon as at the next meeting. As we previously mentioned the pair will continue trade under pressure and in a range as the 2 central banks, FED and ECB are both keeping an easing policy and opening the door for rate cuts. Pair’s next move will be depending mainly from the central banks, who will act first and how will act will give pair a direction that is looking for a long time now. As we are coming into this week, we must pay attention to FED official’s speeches during the week and especially to FED’s Chair Powell.
In this week’s economic calendar, we have on Tuesday, the German ZEW Survey pointing lower at -19.0 and the US retail sales expected unchanged at 0.4% and FED chair Powel speech. On Wednesday, European consumer price index expected lower at 0.8%. On Friday, US Michigan consumer sentiment index expected lower at 98.0
Technical, the picture is positive. After failed to break below 1.1225 and retreaded higher, we are expecting the move to continue into this week and retest high level of 1.1341. Alternative a break and close below 1.1225 will change the picture to neutral and push the pair to retest support line at 1.1100. Our traders keeping open their positions at 1.1287 and 1.1225 targeting profits at 1.1500.
GBPUSD traded higher last week as markets are well priced in the fact that new PM will be Boris Johnson. This week will be the last week that is keeping traders from standby as on the 23rd July we will have the final result. Another factor behind last week’s reversal is the weak US dollar that also pricing in for a rate cut.
On this week economic calendar, we have on Tuesday, average earnings pointing higher at 3.5% and ILO unemployment expected unchanged at 3.8%. On Wednesday, retail price index expected lower at 2.8%, producer price index, lower at 0.8% and consumer price index unchanged at 2%. On Thursday, retail sales expected higher at 2.6%
Technically the pair is negative and continue trades below the 100% Fibonacci level. As it was widely expected a sharp reversal took place after tested the 161.8% extension. This reversal could be good news for the pair but still need a break and close above 1.2788 to change the picture back to neutral. Our traders maintain open their buy positions at 1.3200 (23.6% Fibonacci level), 1.3123 (38.2% Fibonacci level) at 1.3062 (50% Fibonacci level), 1.2996 (61.8% Fibonacci) and 1.2788 (100% Fibonacci) targeting profits at 1.3330.
For more detail economic calendar events please visit our live economic calendar on:
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