Week Ahead February 26 – March 1
EURUSD pair closed last week’s trading session higher on weaker US Dollar. The US Dollar weakness from last week’s trading session is due to selloff of the US Dollar as investors and traders are moving into equity markets. Recent rally in Tech stocks attract attention of investors demanding high dividend payouts. The FOMC minutes released were hawkish as expected with the minutes highlighting that is too early for interest rate reduction. Although the FOMC did not generated any significant reaction to the US Dollar and this helped the pair to close higher.
As for this week, traders and investors will mainly focus on the heavy economic calendar releases form both the US and EU. The CPI number from EU will be the main catalyst behind any significant price action.
On the economic calendar we have on Tuesday, German Gfk consumer confidence pointing at -29 and US Durable good negative at -4.8% On Wednesday, US gross domestic product to remain unchanged at 3.3% On Thursday, German retail sales expected at -1.7% German consumer price index higher at 0.5% and US personal consumption expenditure higher at 0.4% On Friday, European Harmonized index of consumer prices expected lower at 2.9% and US ISM manufacturing PMI higher at 49.5
Technically the picture remains neutral after last week’s close above (38.2%) at 1.0820 In this week’s trading session if pair trades on the downside will test 1.0700 If trades on the upside it will retest 1.0858 (50%) Our traders still long at 1.0861 and 1.0762 targeting profits at 1.1100 We are expecting more aggressive long positions on the way down and new short positions at 1.1100
GBPUSD pair closed last week’s trading session higher on weaker US Dollar. The US Dollar weakness from last week’s trading session is due to selloff of the US Dollar as investors and traders are moving into equity markets. Recent rally in Tech stocks attract attention of investors demanding high dividend payouts. The FOMC minutes released were hawkish as expected with the minutes highlighting that is too early for interest rate reduction. Although the FOMC did not generated any significant reaction to the US Dollar and this helped the pair to close higher.
As for this week, traders and investors will mainly focus on the heavy economic calendar in the US. The lack of any economic releases in the UK will let the pair in the mercy of US Dollar.
On the economic calendar we have on Tuesday, the US Durable good pointing at -4.8% On Wednesday, US gross domestic product to remain unchanged at 3.3% On Thursday, US personal consumption expenditure higher at 0.4% On Friday, US ISM manufacturing PMI higher at 49.5
Technically the pair’s overall picture is positive after last week’s close above (50%) at 1.2670 As for this week, if pair trades on the upside, will test 1.2723 A break and close above (61.8%) will accelerate gains and open the road for 1.3126 Alternative, if trades on the downside, will retest 1.2531 Our traders stay with short positions at 1.2723 targeting profits at 1.2500. We are expecting more aggressive short sellers above 1.2900 targeting profits at 1.2500 and long positions at 1.2460 targeting profits at 1.2825
For more detailed economic calendar events please visit our live economic calendar on:
https://tentrade.com/economic-calendar/
*The material does not contain an offer of, or solicitation for, a transaction in any financial instruments. TenTrade accepts no responsibility for any use that may be made of these comments and for any consequences resulting in it. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losing all your invested capital, so please make sure that you fully understand the risks involved.
