Week Ahead December 23rd – 27th
EURUSD pair closed last week’s trading session lower on FED’s interest rate decision. FED reduces interest rates by 0.25% as it was widely expected, although the 2025 interest rate projection turn hawkish as the FED signal maximum another 0.5% reduction. The chance in projections was taken hawkish by the markets triggering a buying demand for US Dollar and sell off in equity markets. FEDs change in projections drove the pair on the downside during the week with some recovering by Friday after US PCE came out lower than expectations.
As for this week, traders and investors will mainly focus on the technical levels. As we are entering the festive week of Christmas with many markets closed the general weekly trading session is expected to be muted. The lack of liquidity will give some opportunities to traders for fast entries and exits on either side.
On the economic calendar we have on Tuesday the US Durable goods orders pointing lower at -0.4%
Technically the picture is negative after last week’s close below (23.6%) at 1.0425 In this week’s trading session if pair trades on the upside and breaks out of 1.0500 (23.6%) will change the picture to neutral and could test 1.0575 (38.2%) If trades on the downside will test 1.0358. Our traders are net long with positions between 1.0767 – 1.0348 targeting profits above 1.1000 We are expecting new short positions above 1.0913 and more aggressive long positions on the way down.
GBPUSD pair closed last week’s trading session lower on FED’s interest rate decision. FED reduces interest rates by 0.25% as it was widely expected, although the 2025 interest rate projections turn hawkish as the FED signal maximum another 0.5% reduction. The chance in projections was taken hawkish by the markets triggering a buying demand for US Dollar and sell off in equity markets. BOE maintained interest rates unchanged as it was widely expected, although the three MPs voted for rate cut triggered some selloff on GBP pushing the pair even lower. Bothe central banks’ decisions drove the pair on the downside during the week with some recovering by Friday after US PCE came out lower than expectations.
As for this week, traders and investors will mainly focus on the technical levels. As we are entering the festive week of Christmas with many markets closed the general weekly trading session is expected to be muted. The lack of liquidity will give some opportunities to traders for fast entries and exits on either side.
On the economic calendar we have on Monday, the UK Gross domestic product with expectations to remain unchanged at 1% On Tuesday the US Durable goods orders pointing lower at -0.4%
Technically the pair’s overall picture is negative even after last week’s close below 23.6% at 1.2565 As for this week, if pair trades on the upside, will test 1.2693 (38.2%) Alternative, if trades on the downside, will test 1.2490 (0%). Our traders are net long between 1.3038 and 1.2495 targeting profits above 1.3038 We are expecting new short positions above 1.2973 and more aggressive long positions on the way down.
Para conocer con más detalle los acontecimientos del calendario económico, visite nuestro calendario económico en directo en:
https://tentrade.com/economic-calendar/
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