EUR/USD FUNDAMENTALS AND TECHNICALS
Pair closed last week’s trading session lower, as many EU countries are struggling to keep up with their vaccinations, and the 3rd waive of covid-19 infections in Germany, Italy and France. New lockdown measures imposed by many EU countries last week, is creating a negative sentiment in investors and traders, while hopes for faster economic recovery have been waived.
As for this week, all eyes will be turned on Europe’s Inflation number. With the ECB focusing on higher inflation this event will be a catalyst for EURUSD price. A weaker than expected number will add downside pressure to the pair. A better than expected could only help the pair stabilizing around current levels. On the other side, the US Dollars will be waiting for the nonfarm payroll number.
On the economic calendar, we have on Tuesday, European consumer confidence pointing negative at -10.8 German Harmonized index of consumer prices pointing higher at 2% and US consumer confidence higher at 96. On Wednesday, European consumer price index expected to remain at 1.1% and US ADP employment to show an increase of 550K new jobs. On Thursday, German retail sales expected higher at 1.3% and US ISM manufacturing PMI higher at 61.2 On Friday, US non-farm payroll expected to show 655K new jobs and average hourly earnings lower at 0.1%
Technically, the picture is negative. Pair closed below 61.8% at 1.1792 In this week’s trading session if the pair continues the downside, we are expecting to test last year’s support at 1.6115 (100%) If the pair resumes on the upside and close above 61.8% will change the picture to neutral. Our traders keeping open their long positions at 1.2174, 1.2060, 1.1972 and 1.1878 targeting profits at 1.2343 we are expending more aggressive buyers below (61.8%) alternative if pair trades on the upside, we are expecting short sellers to take control above 1.1870 Pair entered the 2020 range of 1.1615 – 1.1900 and is expected to remain within the same range for next few months.
GBP/USD FUNDAMENTALS AND TECHNICALS
Pair closed last week’s trading lower mainly on US Dollar’s strength. Pair continue sliding during last week trading session as markets are digesting over positive sentiment created last few months on faster than expected UK economic recovery. With the pair consolidating at current levels, the next move either upside or downside will be only depending on the economic releases from both sides, the US and the UK.
As for this week, traders will focus on US nonfarm payroll number and UK GDP number.
In the economic calendar we have on Wednesday, Gross domestic product to remain unchanged at 1% On Thursday, Markit manufacturing PMI to remain unchanged at 57.9
Technically the pair is neutral after rejecting and closing above 50%. In this week’s trading session if the pair trades on the upside, we are expecting to test 1.3846 (38.2%) a close above this level will bring the pair back into the uptrend channel with the next level in focus of 1.4000. Alternative if pair continues on the downside and break and close below 50%, first level to be retested is 1.3600 Our traders kept open their long positions at 1.3840 adding new long positions at 1.327 targeting profits at 1.4000 more aggressive long positions are expected at 1.3600 (61.8%) Alternative, if pair continue on the upside, we may see short-sellers around 1.4000 targeting profits at 1.3700
For more detail economic calendar events please visit our live economic calendar on:
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