EUR/USD FUNDAMENTALS AND TECHNICAL
Pair closed last week’s trading session higher on the lack of any high impact economic release from the US and EU. The calm week was accompanied by very low volumes as it was widely expected due to Christmas and new year holidays. This kept the pair hovering around higher levels within very tide range.
As for this week Traders and investors will brace for a high volatile week as the holiday season ending. The busy economic calendar will mark last week’s calm before the storm. All eyes will be turn on the first FOMC meeting of 2023 where trades and investors will gather info on what will be the 2023 FED path. No rate hike is expected on this meeting.
On the economic calendar, we have on Tuesday German Harmonized index of consumer prices pointing higher at 11.8% On Wednesday, US ISM manufacturing PMI expected higher at 49.6 and later FOMC will be follow. On Thursday, US ADP employment expected to show an additional 134K new jobs On Friday, German retail sales expected at -2.5%, European Harmonized index of consumer prices expected higher at 10.5% European retail sales lower at 2.4% and US non-farm payrolls to show a very low number of 57K new jobs.
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 unchanged due to mooted week as it was expected during Christmas and new year’s holiday season. The lack of any economic releases kept the pair hovering around same levels.
As for this week traders and investors will be focus on the first FOMC meeting of 2023. The FED is not expected to rate hikes on this meeting although comments need to be followed as to gather information on what will be follow during 2023.
On the economic calendar we have on Tuesday UK manufacturing PMI to remain unchanged at 44.7 On Wednesday, US ISM manufacturing PMI expected higher at 49.6 and later FOMC will be follow. On Thursday, UK composite PMI to remain unchanged at 49 US ADP employment expected to show an additional 134K new jobs On Friday, US non-farm payrolls to show a very low number of 57K new jobs.
Technically the pair is positive as it closed just above 61.8% level. As for this week if pair resumes upside could retest 100% alternative a break below 61.8% could accelerate losses and change the overall picture to neutral. Buyers still standing at 1.2060 (61.8%) targeting profits around 1.200 We are expecting more aggressive buyers on the way down. Alternative if pair turn on the upside sellers could appear around 1.2300
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