Week Ahead July 24 – 28

EURUSD pair closed last week’s trading session lower. As we previously mentioned and expected the technical correction was around the corner after a sharp move on the upside that brought the pair into an overbought territory. Another reason behind pair’s drop was some profits taken ahead of this week’s FOMC.

As for this week traders and investors will mainly focus on the FED and ECB rate decisions. Both, central banks are expected to raise rates by 0.25% FED is expected to hike rates by 0.25% giving an end to their aggressive rate decision policy. The rate hike is already priced-in to the pair and no sharp downside move will take place. Although failure to deliver the 0.25% rate hike will trigger a sell-off in US Dollar and pair could resume upside move.

On the economic calendar we have on Monday, German Manufacturing PMI pointing higher at 41, European Manufacturing PMI higher at 43.5 and US Manufacturing PMI higher at 46.4 On Thursday, US Gross domestic product expected lower at 1.6% and US Durable goods orders lower at 1% On Friday, German consumer price index expected lower at 6.2%, US Core personal consumption expenditures lower at 4.2% and US Michigan consumer sentiment to remain unchanged at 72.6

Technically the picture is positive after last week’s close above (23.6%) at 1.1127 In this week’s trading session if pair resumes on the upside will re-test 1.1270. If continues on the downside and break and close below 1.1060 (23.6%) could open the road for 1.0915 (38.2%) Our traders are sitting on the side waiting for new technical levels. We are expecting buyers to appear at 1.1060 targeting profits above 1.1200 and new sellers at 1.1270 targeting profits at 1.1050

GBPUSD pair closed last week’s trading session lower. As we previously mentioned and expected the technical correction was around the corner after a sharp move on the upside that brought the pair into an overbought territory. Another reason behind pair’s drop was some profits taken ahead of this week’s FOMC.

As for this week traders and investors will mainly focus on the FED rate decision. FED is expected to hike rates by 0.25% giving an end to their aggressive rate decision policy. The rate hike is already priced-in to the pair and no sharp downside move will take place. Although failure to deliver the 0.25% rate hike will trigger a sell-off in US Dollar and pair could resume upside move.

In the economic calendar we have on Monday the UK Manufacturing PMI pointing lower at 46.1 and US Manufacturing PMI higher at 46.4 On Thursday US Gross domestic product expected lower at 1.6% and US Durable goods orders lower at 1% On Friday, US Core personal consumption expenditures lower at 4.2% and US Michigan consumer sentiment to remain unchanged at 72.6

Technically the pair is positive after last week’s close above ( 23.6% ) at 1.2853 As for this week, if pair resumes on the upside, will test 1.3140 Alternative, if continues on the downside, will test 1.2750 (23.6%) We are expecting short sellers at 1.3140 targeting profits at 1.2750 and buyers at 1.2750 targeting profits at 1.3140

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

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

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