Week Ahead July 17 – 21

EURUSD pair closed last week’s trading session firm higher on softer than expected US CPI and PPI numbers. Both indicators are showing a relief in inflation and erased all expectations of any rate hike from the FED’s future policies.

As for this week traders and investors will mainly focus on the European CPI A softer than expected release could bring the pair sharp on the downside as it will weight negative on ECB’s future rate decisions. From the US Dollar side traders will trade in technical levels of the pair. The lack of any high impact economic releases and the black period of FED’s announcements ahead of next week’s FOMC will keep the pair in range.

On the economic calendar we have on Tuesday, US Retail sales pointing higher at 0.5% On Wednesday, European Harmonized index of consumer prices expected to remain unchanged at 5.4%

Technically the picture is positive after last week’s breakout and close on multi months new highs at 1.1227. In this week’s trading session if pair continues on the upside will re-test 1.1300 Having in mind that pair is trading in an overbought territory, a correction on the downside could be on the cards for this week’s trading session. A downside move could test the break put level of 1.1050 (23.6%) Our traders stop-out all their short positions and now are sitting on the side waiting for new technical levels. We are expecting buyers to appear at 1.1050 targeting profits above 1.1200 and new sellers around 1.1300 targeting profits at 1.1050

GBPUSD pair closed last week’s trading session firm higher on softer than expected US CPI and PPI numbers. Both indicators are showing a relief in inflation and erased all expectations of any rate hike from the FED’s future policies.

As for this week traders and investors will mainly focus on the UK CPI releases. A softer than expected release could bring the pair sharp on the downside as it will weight negative on BOE’s future rate decisions. From the US Dollar side traders will trade in technical levels of the pair. The lack of any high impact economic releases and the black period of FED’s announcements ahead of next week’s FOMC will keep the pair in the mercy of GBP’s high impact releases.

In the economic calendar we have on Tuesday, the US retail sales pointing higher at 0.5% On Wednesday, UK CPI expected lower at 8.2% and UK PPI lower at 2.8% On Friday, UK retail sales expected lower at 0.2%

Technically the pair is positive after last week’s breakout and close, at 1.3090 As for this week, if pair continues on the upside, will test 1.3200 Alternative, if resumes the downside, will test 1.2740 (23.6%) Our short sellers, have stop-out all their short positions and now waiting for new technical levels. Having in mind that pair is trading in an overbought territory, a correction on the downside could be on the cards for this week’s trading session. We are expecting new short sellers at 1.3200 targeting profits at 1.2800 and new buyers at 1.2740 targeting profits at 1.3100

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

http://tentrade.com/economic-calendar/

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