Week Ahead October 9 – 13

EURUSD pair closed last week’s trading session unchanged after another failed attempt to break lower. The sharp reversal on the upside it was mainly due to some profit taking and technical correction after pair entered oversold territory in the last 2 weeks. The sharp reversal on the upside was fueled by the lower than expected ADP employment and mixed non-farm payroll with hourly earnings. Even though the labor market continues to show strength the lower than expected hourly earning did not help the US Dollar to gather more strength.

As for this week traders and investors will be focus on the FOMC minutes. No interest rate hike is expected at this meeting although the minutes will guide investors on what the FED is up to. The CPI numbers from both the EU and US will be the stronger catalyst behind any move during this week’s trading session.  Of course, given the recent geopolitical situation in Israel, investors may demand US Dollar as safe haven asset and could face another attempt to break lower.

On the economic calendar we have on Wednesday, German Harmonized index of consumer prices to remain unchanged and US Producer price index unchanged at 2.2% On Thursday, US consumer price index expected the same at 3.7% and on Friday, Michigan consumer sentiment expected at 68

Technically the picture is negative after last week’s lower close at 1.0582 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 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 marginally higher after another failed attempt to break lower. The sharp reversal on the upside it was mainly due to some profit taking and technical correction after pair entered oversold territory in the last 2 weeks. The sharp reversal on the upside was fueled by the lower than expected ADP employment and mixed non-farm payroll number with hourly earnings. Even though the labor market continues to show strength, the lower than expected hourly earning did not help the US Dollar to gather more strength.

As for this week traders and investors will mostly focus on the FOMC minutes. No interest rate hike is expected at this meeting although the minutes will guide investors on what the FED is up to. The CPI number from the US will be the stronger catalyst behind any move during this week’s trading session. From the GBP side a better than expected gross domestic product could help pair recovered more ground. Of course, given the recent geopolitical situation in Israel, investors may demand US Dollar as safe haven asset and could face another attempt to break lower.

On the economic calendar we have on Tuesday, the UK BRC retail sales pointing at 4.3% On Wednesday, US producer price index at 2.2% On Thursday, UK gross domestic product expected higher at 0.2% and US consumer price index unchanged ta 3.7% On Friday, Michigan consumer sentiment expected at 68.

Technically the pair is negative after last week’s close at 1.2235 As for this week, if pair continues 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 1.2135 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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