May 19th – 23rd
EURUSD pair closed last week’s trading session lower on US china trade deal. As we were expected from last week the agreement to lower tariffs boosted confidence in equity markets and helped the US dollar to recover from last month’s selloff. Despite softer US CPI and Michigan consumer sentiment the US Dollar manage to hold its strength against Euro and kept the pair lower for this week’s trading session.
As for this week, traders and investors will focus mainly on technical levels and light economic calendar. There are not any scheduled high impact events for this week, apart from some FED’s officials’ speeches that are not expected to generate any volatility.
On the economic calendar we have on Thursday, the German Manufacturing PMI pointing higher at 49, European manufacturing PMI pointing higher at 49.4 and US services PMI at 50.8
Technically the picture is neutral after last week’s close just on (23.6%) at 1.1162 In this week’s trading session if pair trades on the upside will test 1.1261 A break out and close above 1,1261 will open the road for 1.1477 If trades on the downside will test 1.1026 (50%) A break and close below 1.1026 will add downside pressure and test 1.0923 Our traders opened new long positions starting at 1.1128 targeting profits at 1.1300 we are expecting more aggressive long positions on the way down and new short positions above 1.1300
GBPUSD pair closed last week’s trading session marginally lower on US – China deal. As GBP continue to price in the trade deal between UK and US together with last week’s rally on UK equity market, GBP manage to gather more strength against US Dollar. Deteriorated US economic indicators and better than expected UK GDP was additional reasons behind pairs strong hold.
As for this week, all eyes will be on the UK CPI. A higher print will add pressure on BOE to maintain interest rates unchanged and will push the pair even higher. There is not any scheduled high impact event for this week. Trader and investors will mainly focus on technical levels and speeches from FED’s and BOE’s officials.
On the economic calendar we have on Wednesday, the UK CPI pointing higher at 3.6% Thursday, the UK Manufacturing PMI pointing higher at 45.4, and US services PMI at 50.8 On Friday, UK retail sales to remain unchanged at 0.4%
Technically the pair’s overall picture is positive after last week’s close above 23.6% at 1.3305 As for this week, if pair trades on the upside, will test 1.3410 A break and close above 1.3410 will open the road for 1.3500 Alternative, if trades on the downside, will test 1.3157 (38.2%) A break and close below 1.3157 will open the road for 1.3078 Our traders are short at 1.3305 targeting profits at 1.3175 we are expecting more aggressive short positions on the way up and new long positions starting at 1.3157 (38.2%).
For more detailed economic calendar events please visit our live economic calendar on:
https://tentrade.com/economic-calendar/
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