Week Ahead October 2 – 6

EURUSD pair closed last week’s trading session lower on persisting US Dollar strength. The better than expected US economic releases boosted demand for US Dollar. From the euro side, the dovish comments from ECB’s officials and the lower than expected CPI, erased any chances for a rate hike in October and this weighted negative on Euro. By the end of the week the pair experienced a sharp reversal on the upside recovering some lost ground. This might be due to some profits taking positions and a correction after pair entered an oversold territory.

As for this week traders and investors will be focus on the US non farm payroll and on FED’s and ECB’s officials’ speeches. The heavy economic calendar from both the US and The EU will generate some volatility that will give the chance to traders, to re-assess their positions.

On the economic calendar we have on Monday, the US ISM Manufacturing PMI pointing higher at 47.9 On Wednesday, European retail sales expected at -0.5% the US ADP employment expected to show an additional 140K new jobs and ISM services PMI lower at 53.6 On Friday, US non farm payroll expected to show an additional 158K new jobs.

Technically the picture is negative after last week’s lower close at 1.0575 In this week’s trading session if pair continues on the downside and break below (100%) level could accelerate losses and test 1.0400  If resumes on the upside and break and close above 1.0800 (61.8%) will change the picture back to neutral and could open the road for 1.0890 (50%) Our traders trigger stop losses to all their positions and are now sitting on the side in search of new levels. We are expecting new long positions at 1.0500 and short sellers at 1.0900

GBPUSD pair closed last week’s trading session lower on persisting US Dollar strength. The better than expected economic releases in the US boosted demand for US Dollar. The lack of any high impact economic releases in the UK let the pair in the mercy of US Dollar. By the end of the week the pair experienced a sharp reversal on the upside recovering some lost ground. This might be due to some profits taking positions and a correction after pair entered an oversold territory.

As for this week traders and investors will mostly focus on US non-farm payroll. And the speeches from FED’s officials. Once again, the pair will be trade on the mercy of US Dollar on the lack of any economic releases in the UK.

On the economic calendar we have on Monday, the US ISM Manufacturing PMI pointing higher at 47.9 On Wednesday, the US ADP employment expected to show and additional 140K new jobs and ISM services PMI lower at 53.6 On Friday, US non farm payroll expected to show an additional 158K new jobs.

Technically the pair is negative after last week’s close below at 1.2200 As for this week, if pair resumes on the upside, will need to break and close above 61.8% to change the picture back to neutral. Alternative, if continues on the downside, and breaks below 1.2113 will open the road for 1.2000 Our traders are sitting on the side and waiting for new technical level before entering into new positions. We are expecting new long positions at 1.2200 and new short positions at 1.2500

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

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

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