EURUSD Closed last week’s trading session higher amid US Dollar selloff. Fed maintain a dovish tone in last week’s FOMC while FED’s chair Jerome Powell’s speech in this year Jackson Hole symposium reiterated FED’s policy that interest will remain low as long a as it needs until will bring inflation near to FED’s target.
In this week’s trading session traders will continue following FED’s officials’ speeches and economic releases.
In the economic calendar we have on Monday, German Harmonized index of consumer prices pointing higher at 0.4% On Tuesday, European consumer price index core lower at 1% and US manufacturing PMI lower at 54. On Wednesday, German retail sales expected lower at 3% and US factory orders lower at 5%. On Thursday, European Markit PMI composite expected unchanged at 51.6 European retail sales lower at -0.5% US ISM Service PMI lower at 57.1 On Friday, US nonfarm payroll expected to show that labor force added 1,55 million jobs and US Average hourly earning increase at 5.8%
Technically, the picture is positive. Pair still trading just around 161.8%. looking for breakout. Last month’s range between 1.1750-1.1950 will not last forever. In this week’s trading session if the pair retreat downside we are expecting as next level 1.1700 (last 4 week’s lower level). Traders are expecting the downside correction, break from 1.1750 and bring the pair back to 100% 1.1400. Our traders keeping open their short positions opened between 1.1000- 1.1900 We are expecting buyers to take control at 1.1545 and sellers to take profits on their short positions opened above 1.1800 if downside continues. Alternative if pair breaks and close above 1.1900 on the 4H chart upside move may resume and bring the pair on the next resistance of 1.2100
GBPUSD closed the week firm higher on US Dollar’s persisting sell off and on the lack of any economic release in the UK. As it was widely expected FED maintained a dovish policy while BOE’s governor Andrew Bailey failed to deliver any opposite policy. Apart from central bankers’ speeches another reason behind GBP’s rally is the new 2-week dead line on Brexit talks, given by EU officials in order to breakthrough a trade deal before the end of the year.
On this week’s trading session traders will follow once again FED official’s speeches, BOE official’s speeches and economic releases.
In the economic calendar we have on Tuesday, Markit manufacturing to remain unchanged at 55.3 and on Wednesday inflation report hearings
Technically the pair is still positive. If pair breaks and close above 1.3350 (last week’s high) we could see more gains with first level to be tested at 1.3500 (100%) in the coming sessions. Alternative a close below 1.3050 will resume downside to retest 1.2714 61.8%. Our traders keeping open their short positions opened at 1.2700 1.3016 and 1.3150 adding new short positions last week at 1.3300 targeting profits at 1.3050 the latest ones and 1.2714 the old ones. We are expecting more aggressive sellers this week if pair continue upside, alternative, if pair retreat lower we are expecting new buyers to appear as from 1.3050 and more aggressive buyers at 1.2714 (61.8%) with our sellers to take profit of their short positions
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