EUR/USD FUNDAMENTALS AND TECHNICALS

Pair closed last week’s trading session higher after an attempt to break lower. In the beginning of last week, a tweet from US President Trump that he is ordering the immediate halt of stimulus discussions until after elections, pushed the US Dollar higher in demand of safe heaven while markets collapsed almost 500 points. News were digested faster than expected by markets and before the end of the week a new tweet from US President Trump calling to reopen the negotiations for stimulus and even increase the budget to be spent, was taken more than positive by markets and investors and traders started to sell the US Dollar pushing EURUSD pair higher.

In this week, traders will keep focusing on the additional aid package approval by the US policymakers and how bigger the amount will be compared to the initial democrat’s proposal. Debates between the 2 candidates for the next US presidential election will resume this week and traders must follow the change in polls’ results that can easily change US Dollar’s direction. ECB’s officials’ speeches must be closely monitored in order to gather clues on what’s next for ECB and how they will handle or avoid a second lockdown in Europe.

On the economic calendar we have on Tuesday, German Harmonized index of consumer prices with expectations to remain unchanged at -0.4% and US Consumer price index pointing higher at 1.4%. On Wednesday, US producer price index expected lower at 0.3%. On Friday, European consumer price index expected unchanged at -0.4%, US retail sales higher at 0.5% and Michigan consumer sentiment higher at 81.

Technically, the picture is neutral. Pair traded higher last week and close below (161.8%) 1.1830 In this week’s trading session if the pair continues on the upside and break and close above 161.8% we are expecting as first next level 1.1914 alternative if close below 161.8%, downside maybe resume and push the pair on the downside to retest September’s lower level of 1.1600 Our traders keeping open their short positions opened between 1.1000- 1.1600 and continue adding new short positions at 1.1800 targeting profits at 1.1600. We are expecting buyers to take control at 1.1600 if pair retreat lower, sellers to take profits on their short positions opened at1.1800 Alternative if pair continues upside more aggressive short positions will be opened above 1.1860

 

 

GBP/USD FUNDAMENTALS AND TECHNICALS

Pair closed lower last week’s session amid US Dollars weakness on additional stimulus hopes proposed by US President Trump. UK Prime minister Boris Johnson announce on Friday addition government support for business that are forced to close in this winter’s additional measures and expands jobs support program by paying employees tow thirds of their salary as from 1st November 2020 and for the next 6 months. During the weekend the government announce new lockdown measures and stricter social and public rules in order to halt virus spread and avoid a full lockdown.

As for this week, the main actor for any price action will be on the outcome of the negotiations between UK and EU if finally, an agreement will be reached before the deadline. Last week UK threatened EU that if an agreement will not be reached the UK will abandon negotiations. BOE officials’ speeches must be monitor in order to gather information how the BOE will act in the UK’s fight against COVID-19 spread.

In the economic calendar, we have only a major event on Tuesday, ILO unemployment rate pointing higher at 4.3%

Technically the pair is positive to neutral after last week’s upside move continued. In this week’s trading session if pair continues on the upside, traders are expecting as next level 1.3245 Alternative if pair resume downside next level to be retested is the 61.8% Our traders opened new short positions at 1.3000 targeting profits at 1.2800 We are expecting more aggressive short sellers to appear on the way up to 1.3260. Alternative if pair resumes downside shot sellers will take profits and buyers will take control at 1.2800 (61.8%)

 

 

For more detail economic calendar events please visit our live economic calendar on: 

https://10tradefx.com/economic-calendar/

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