Week Ahead June 5 – 9
EURUSD pair closed last week’s trading session unchanged after an attempt to break lower and an attempt to break higher. The pair’s attempt to break higher was due to dovish FED’s comments on interest rates. Few FED’s officials have previously comment that the central bank will increase rates by 0.25% in July. Although FED’s Jerome Powell signaled that the central bank is done with interest rates and this helped the pair to recover some lost ground. Although the better than expected non-farm payroll manage to bring the pair sharp on the downside erasing all gains and closed around same levels.
As for this week traders and investors will mainly focus on the economic releases. As the FED is entering its black week, where no comments are allowed ahead of July’s rate decision, the trading session expected to be choppy in a tide range. From the Euro side the most important catalyst will be the gross domestic product.
On the economic calendar we have on Monday the US ISM services PMI pointing lower at 51.5 on Tuesday European retail sales expected at -1.8% On Thursday European gross domestic product expected at 1.2%
Technically the picture is neutral after last week’s rejection of 61.8% and close just below (50%). In this week’s trading session if pair continues on the upside will test 1.0811 (38.2%) Alternative a break and close below 1.0625 (61.8%) will accelerate losses and open the road for 1.0500. Our traders are long at 1.0715 targeting profits above 1.1000 We are expecting more aggressive buyers at 1.0620 and short sellers to appear above 1.0923 (23.6%)
GBPUSD pair closed last week’s trading session marginally lower after an attempt an attempt to break higher. The pair’s attempt to break higher was due to dovish FED’s comments on interest rates. Few FED’s officials have previously comment that the central bank will increase rates by 0.25% in July. Although FED’s Jerome Powell signaled that the central bank is done with interest rates and this helped the pair to recover some lost ground. Although the better than expected non-farm payroll manage to bring the pair on the downside erasing all gains and closed lower than last week’s trading session.
As for this week traders and investors will mainly focus on the technical levels. As the FED is entering its black week, where no comments are allowed ahead of July’s rate decision, and the light economic calendar in the UK the trading session expected to be low in a tide range.
In the economic calendar we have nothing from the UK. On Monday the US ISM services PMI pointing lower at 51.5
Technically the pair is neutral after last week’s close below (23.6%) As for this week if pair resumes on the upside will need to break and close above 23.6% in order to re-test 1.2650 Alternative if trades on the downside, will retest 1.2200 (38.2%) Short sellers are standing between 1.2200 – 1.2400 targeting profits at 1.2000 we are expecting more aggressive short sellers on the way up and new buyers to appear around 1.2200 targeting profits above 1.2500
For more detailed economic calendar events please visit our live economic calendar on:
https://tentrade.com/economic-calendar/
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