In previous week, the market was highly volatile on worse than expected U.S Labor market figures. The Greenback tumbled against major currency pairs and it helped the EURUSD to move almost more than 370 Pips in U.S trading sessions on Friday.
Fundamentals for EURUSD:
On Monday, the Eurozone has very few economic events to release, but to trade the major EURUSD
I would recommend traders to monitor the following events:
– German Factory Orders
Germany is considered as a major manufacturing hub in the Eurozone but since 2015, it is facing a slowdown in economic growth. So the German factory orders being a medium impacted economic event carries importance in the absence of high impacted news today. The analysts are expecting a fall in factory orders by -0.4% but the actual figure came out much lower than expectation. The decrease of -2.0% demonstrating that there are still slacks in the European economy, further ECB needs to keep their monitory policy tone dovish.
– Fed Chair Yellen Speech
Now, after the release of German Factory orders, the investors need to wait the Fed’s Chair Janet Yellen speech for further clues on interest rate hike sentiment. Well, I am not expecting anything special from Janet Yellen but any surprise from her will shock the market. U.S Labor figures released in last week shows that the market still has slacks and Fed needs to rethink on their July rate hike sentiment.
EURUSD gained dramatically on Friday and placed high of 1.1370. Right now, it’s holding below a strong trend line resistance level of 1.1370. The Oscillator RSI is also in overbought territory and the pair is likely to retrace a bit before further uptrend.
There is no doubt that EURUSD is making its way to place new high, especially after forming a bullish engulfing and closing above 50 period EMA in daily time frame.
Daily Trading Range:
1.1435 – 1.1265
Daily Support & Resistance Levels
Pivot Point: 1.291
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About The Forex Analyst
Ph.D Scholar and MBA, Business professional with 3 years of experience working as a forex trader and analyst, trading mostly forex, stocks and futures.