The Euro was seen struggling against a couple of currencies during this past week, including the Japanese yen. The EURJPY pair traded lower and back towards an important support area. I think if the pair manages to clear that specific support area, then it might continue trading lower. So, it is better to wait and then search for the possible selling opportunities.
There is an important support area around the 135.90-80 levels, as can be seen in the chart below. If the pair manages to break the mentioned support area and closes below it, then we can enter into a sell trade once the pair retest the broken support area. Remember, wait for the pair to close below the mentioned support area before entering into a trade.
Initial target should be around the 134.20 level, and final target could be around the 132.00 level. Stop should be placed above the 136.80 level.
Major events scheduled in the upcoming week
There was finally some retracement in the US dollar this past week, and the reason for the same was the FOMC meeting minutes. The Fed highlighted that the US dollar gained a lot over the last couple of months and it could hurt the economy. This ignited a sharp selling pressure on the US dollar, and it broke down against the Euro, British pound and the Australian dollar. However, this did not last long, as the US dollar managed to recover almost all of the lost ground going into the weekend. This is another sign of bullish sentiment for the US dollar in the medium term.
Let us look at all major events lined up in the upcoming week.
Sunday – Chinese imports, exports and trade balance data.
Monday – German WPI data and Chinese New loans data.
Tuesday – French CPI, Spanish CPI, Swiss PPI, UK CPI, German ZEW economic sentiment and Chinese CPI.
Wednesday –German CPI, Draghi’s speech, UK employment data and US retail sales data.
Thursday – Euro zone CPI, US initial jobless claims, Philadelphia fed manufacturing index and Canadian manufacturing sales data.
Friday –US building permits data, Yellen’s speech, Canadian CPI and Michigan consumer sentiment.
This analysis is taken from Weekly Market Forecast, which also includes trade opportunities on: GBPCHF, EURGBP, USDJPY, EURJPY, GBPJPY, AUDUSD, NZDUSD, AUDNZD, EURAUD, USDCAD and AUDCAD.
Get it HERE: Vladimir’s Markets Forecast
Happy trading friends!
