Pair closed last week’s trading session lower on upbeat US economic release. With the non farm payroll number and hourly earnings beating expectations the US Dollar become stronger, bringing the pair on multi months lower levels. Apart from the economic release FED’s Clarida, commented that it’s about time the central bank will tapper their bond buying.

As for this week, traders will be focusing in the economic releases and any comments from FED’s officials on the central bank’s future path. As summer holidays are on the way in most of the US and Europe, liquidity will be thinner and unexpected moves on either side could be triggered.

On the economic calendar we have on Tuesday, the European ZEW Economic sentiment pointing higher at 72 On Wednesday, German Harmonized index of consumer process expected to remain unchanged at 3.1% US Consumer price index lower at 4.3% On Friday, the US Michigan consumer sentiment expected higher at 81.3

Technically, the picture is negative. Pair closed lower just on the (0%) at 1.1760. In this week’s trading session if the pair continues on the downside and break and close below this level, will accelerate losses down to 1.1600  alternatively if resumes upside and close above 23.6% on the 4H chart could change the picture back to neutral with the next resistance to be retested the 1.1952 (38.2%) Our traders kept open their long positions at 1.1970  1.1865 and 1.1762 targeting profits above 1.2240 we are expecting some stop losses to be triggered if the pair closes below 1.1762. Alternatively, a move on the upside could bring short sellers around 1.2000 targeting profits at 1.1750





Pair closed last week’s trading session lower on upbeat US economic release. Downside move was limited as the mixed economic indicators from both sides were positive and balanced the move. BOE maintained policy unchanged as it was widely expected, although comments from BOE Governor Bailey were hawkish, saying that, the central bank is ready to act if inflation rate persist on the upside, pushed the GBP higher for a limited time and compensated the upbeat US Dollar’s moved. Al those resulted in, hover the pair up and down around same levels.

As for this week traders will be closely monitoring the economic release from both sides and any potential comments from both central bank’s officials.

In the economic calendar we have on Tuesday, BRC Like-for-Like retail sales pointing higher at 13.1% On Thursday, Gross domestic product expected higher at 4.8% and manufacturing production higher at 0.4%

Technically the pair is neutral after last week’s downside move and close between 50 and 61.8% level at 1.3874 In this week’s trading session if pair continue to trades on the upside, will retest last week’s higher level at 1.3990 a close above last week’s higher level of 1.3990 will change the picture to positive and open the road to 1.4100 (23.6%) Alternatively if pair trades on the downside first level to be retested is 1.3830 (61.8%). Our traders kept open their long positions at 1.4000, 1.3837 and 1.3671 targeting profits at 1.4200 We are expecting short sellers to appear at 1.4000 targeting profits at 1.3600




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