Week Ahead January 9th – 13th

EUR/USD FUNDAMENTALS AND TECHNICAL

Pair closed last week’s trading session lower after a failed attempt to break out of last month’s tide range. At the beginning of the week demand for US dollar ahead of FOMC minutes and after the two weeks holiday season, brought the pair lower signalling a change of trend to the downside as inflation numbers in the EU started to cool down. Although the worse than expected economic releases in the US reversed the pair sharp on the upside and closed last week’s trading session marginally lower compare to last week’s trading session.

As for this week Traders and investors will mainly focus on the inflation number in the US. The light economic calendar from both sides will keep the pair hovering around same levels. Traders and investors demand for either US Dollar or Euro will defy this week’s trading session.

On the economic calendar, we have on Thursday, US consumer price index to remain unchanged at 6% On Friday, US Michigan consumer sentiment expected higher at 61.6

Technically the picture is positive after last week’s close around same levels.  In this week’s trading session if pair continues on the  upside could retest 100% 1.0750  Alternatively, if pair resumes the downside we are expecting to retest 1.0300 (61.8%). Our traders are short between 1.0500 – 1.0700 targeting profits at 1.0300 we are expecting more aggressive sellers above 1.0800 Alternative if pair retreats on the downside we are expecting new buyers at 1.0300 targeting profits at 1.0600

GBP/USD FUNDAMENTALS AND TECHNICAL

Pair closed last week’s trading session higher after a failed attempt to break lower. At the beginning of the week demand for US dollar ahead of FOMC minutes and after the two weeks holiday season, brought the pair lower signalling a change of trend to the downside. Although this was short live as the worse than expected economic releases in the US reversed the pair sharp on the upside and closed last week’s trading session marginally higher.

As for this week traders and investors will be focus on the US inflation number and clearly on demand for either US Dollar or GB Pound. The light economic calendar will keep the pair hovering around same levels.

On the economic calendar we have on Tuesday UK BRC Like-for-like retail sales pointing lower at -4.1% on Thursday,  US consumer price index to remain unchanged at 6% On Friday, UK Gross domestic product expected lower at -0.1% UK Manufacturing production lower at -0.2% and US Michigan consumer sentiment expected higher at 61.6

Technically the pair is positive as it rejected and closed above 61.8% level. As for this week if pair resumes upside could retest 23.6% alternative a break below 61.8% could accelerate losses and change the overall picture to negative. Buyers still standing between 1.2060 and 1.1820 targeting profits around 1.2300 We are expecting some profit taking this week and new buyers on the way down. Alternative if pair continues on the upside sellers could appear around 1.2300

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

https://10tradefx.com/economic-calendar/

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