EURUSD Closed last week’s trading session higher but within the tide range of last months. The lack of fundamentals events, the waiting stance of approving the recovery package in the US are keeping markets around the same levels searching for direction. US President Donald Trump announcement of being tested positive with Covid-19 sparked some volatility by the end of the week, although markets digested the news and settle around the same levels.
In this week, traders will keep focusing on the additional aid package approval by the US policymakers and FED’s chair Powell speech, FOMC minutes and ECB. Debates between US President Donald Trump and Democratic candidate Biden might pause for a while if President Trump will be forced to enter in quarantine.
On the economic calendar we have on Monday, European retail sales with expectations to be higher at 0.6% and US ISM services PMI lower at 56. On Tuesday, German factory orders expected higher at 5%. On Wednesday, German industrial production expected higher at 1.5%
Technically, the picture is neutral. Pair continues trading around 1.1700 just below multi-month range breakout of 1.1750 – 1.2000 with the technical showing that the road to 1.1400 (100%) is still on the table. In this week’s trading session if the pair continues with the downside we are expecting as first level 1.1550 a level acted as resistance last 2 years and now turned as support. A break below this level will open the road to test 1.1400 Our traders are expecting the downside to continue. Our traders keeping open their short positions opened between 1.1000- 1.1600 targeting profits on lower levels. We are expecting buyers to take control at 1.1545 and sellers to take profits on their short positions opened above 1.1600 if downside continues. Alternatively, if pair close above 1.1730 (last week’s higher level on the 4H chart), upside move may resume and bring the pair on the next resistance of 1.1900 (161.8%) where more aggressive short positions will be opened.
GBPUSD closed higher last week’s session amid comments of UK prime minister Boris Johnson and EU president Von Der Leyen saying that both sides are willing to step into negotiation and discuss the next steps. On the Saturday 03/10/2020 meeting between the U.K. and the European Union agreed to step up their negotiations over a post-Brexit trade accord following a crunch call between Boris Johnson and the bloc’s leaders in which both renewed their commitment to getting a deal.
As for this week, all eyes will be on the outcome of the negotiations between the two sides and MPs speeches.
In the economic calendar we have on Friday, Manufacturing production pointing lower at -3%Gross domestic product lower at 5.7% and NIESER GDP estimate higher at 8.7%
Technically the pair is positive to neutral after last week’s sharp upside reversal from 61.8% In this week’s trading session if pair continues upside traders are expecting as next level 1.3245 Alternative if pair breaks resume downside next level to be retested is the 61.8% Our traders took profit all their long positions and now are sitting on the side. We are expecting short sellers to appear as from 1.3000 and buyers as from 1.2800
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