EURUSD Closed the week marginally higher on a week of very low volatility and mixed economic indicators from both the US and Europe. On the European part we have seen improvement in business sentiment and Markit composite PMI adding hopes that Eu-rope’s GDP will recover back to normal levels. On the US part even though nonfarm payroll came out better than expected, did not create any significant strength for the US Dollar as economic indicators are overshadowed by increasing cases of corona virus in-fections with many US states continue restriction and delaying reopening plans. In the coming week investors will be continue focus on corona virus new cases and how gov-ernments will respond to reopening plans or any new restrictions where need to.
On this week’s economic calendar, we have on Monday, German factory orders pointing positive by 15%, European retail sales negative by-7.5%, US Markit services PMI to re-main unchanged at 46.8 and US ISM non-manufacturing PMI expected higher at 49.5 On Tuesday, German industrial production expected higher at 10%. On Thursday, US initial jobless claims expected to decrease at 1,375K new claims
Technically, the picture is positive to neutral. Pair continues trading above 61.8%. A break and close below this level will add downside pressure and test next level at 50% 1.1028 alternative if holds above 61.8% pair will retest 100% 1.1400 Our traders keep open their short positions at 1.1029 and 1.1100 targeting profits at 1.0930. We are expecting buyers to appear at 1.1100 and 1.1020 targeting profits at 1.1400
GBPUSD closed the week higher on constructive, comprehensive, and useful negotiation outcome between EU and UK according to official’s statements from both sides. Discussions will still resume in London as planned next week, according to statements from both sides, with officials saying the early finish is not a sign the talks have collapsed. Both sides said that are closed to a deal earlier than expected with only major division now on what role will play the European court of justice in the UK. This week all eyes will be turn on the London’s meeting of the 2 negotiators, David Frost and Michel Barnier.
On this week’s economic calendar, we have on Monday, Markit construction PMI pointing higher at 47. On Tuesday Halifax house prices to remain unchanged at 2.6%
Technically the pair is positive after last week close at 1.2480 above 50%. If pair manage to stand above 50%, we could see more advance with first level to be tested at 1.2584 in the coming sessions. Alternative a break and close below 50% will change the picture to neutral-negative and resume downside to retest 38.2%. Traders are expecting pair to range around same levels (1.2200-1.2700). Sellers have taken profit their short positions at 1.2463 (50%) 1.2640 and 1.2700 (61.8%) after hitting trailing stops at 1.2400. Buyers are keeping open their long positions at 1.2460 (50%) targeting profits above 1.2700 and we are expecting more aggressive buyers to appear at 1.2321 and 1.2220 (38.2%) If pair continues higher we are expecting new sellers to jump in at 1.2584 and 1.2717 (61.8%)
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