Economic Event’s Outlook
EUR/USD Trades Inline with Forecasts
The EUR/USD is trading slightly bullish above 1.1305 ahead of Draghi’s speech and critical U.S. data releases announcements. On Friday, the pair currency confirmed a technical breakout with a surge of up to 1.1348. Up to this time, a bullish follow-through has persisted elusive with the upside capped near 1.1340. EUR/USD is reversing Tuesday’s adverse price action although it manages well to keep business above the critical 1.1300 the figure for the time being.
Key Trading Level: 1.1322
USD/JPY – Trade war & Safe Haven Demand Plays
The Geopolitics takes a back seat ahead of US CPI and the Fed next week. The dollar was at a weaker end overnight as Trump said in a tweet other nation’s currencies as undervalued, the euro and other currencies are decreased against the dollar because the U.S. interest rate is too high as compared to other currency. The USD/JPY pair initially raised to 108.80 but then dropped to 108.50, to just above the hourly cloud.
On the technical front, the USD/JPY has turned bearish as investors seem to move their funds into the haven currency Yen. The USD/JPY is showing a bearish crossover on the 3-hour chart below 20. 25 and 50 periods EMA. Almost all of the indicators were supporting the pair around 108.400, but the same level is working as support now.
Key Trading Level: 108.6
Consider staying bearish below 108.500 as the pair shows a good potential to go after 107.890.
GBP/USD- Sideways Range Remains Intact
On Wednesday, British lawmakers race to become the next PM continues. Whereas the presidency remains surrounded by long-lived Brexit worries, traders consider a lack of U.K. data while taking the rounds of the GBP/USD pair near 1.2720 ahead of the London.
Notwithstanding lack of trend, 20, 25 and 50 day long moving averages keep the GBP/USD supported. On the more significant timeframe, the GBP/USD also portrays an ascending trend-channel which strengthens the overall bearish trend in the cable. GBP/USD pair’s strength as it trades near 1.2720 ahead of the London open on Wednesday.
With this, the pair can keep being a strong contestant to aim for 1.2760/65 and 38.2% Fibonacci retracement level of 1.2800.
Key Trading Level: 1.2708
Consider staying bearish below 1.2760 and bullish over 1.2700 as the pair is likely to continue trading both ways ahead of U.S. Inflation data. All the best!