The Euro was seen struggling against the British pound during this past week, but the EURGBP pair seems to be recovering some of the lost ground this week. The pair has managed to find support around the 0.7920 level and traded higher. I think it might continue trading higher in the short term. So, buying dips is a good option moving ahead.
There is a bullish trend line forming on the 1 hour chart for the EURGBP pair. There are several support levels around the 0.7930-40 area, which are also coinciding with the mentioned trend line. Once the pair dips 10-15 pip from the current levels and trades closer to the mentioned support area, then we can jump into a buy trade. Remember, risk/reward for this trade is very good, as we are risking not more than 20 pips and aiming for about 60-100 pips.
Initial target should be around the 0.8010 level, and final target could be around the 0.8060 level. Stop should be below the last low of 0.7915.
Reviewing yesterday’s events and trades
Yesterday, the US JOLT’s job openings data was published, which registered a better than expected outcome with a reading of 4.64M, beating the expectations of 4.53M. The US dollar was seen trading higher for some time, but later lost ground and traded lower against the Euro and the British pound. The NZDUSD pair was one of the best performers of the day, as it traded above the 0.8800 level. Moreover, the Chinese CPI data was released during the Asian session, which registered softer-than-expected reading.
Fundamental Outlook for the day
Today, there is an important risk event lined up. The FOMC meeting minutes will be published during the NY session. It would be interesting to see what the Fed members have to say about the recent incoming data. If they remain dovish, then the US dollar might lose some more ground against the major currencies. On the other hand, any hawkish remarks could take the US dollar higher in the coming session. Moreover, during the next Asian session, the Australia’s employment data will be released, with the unemployment rate expected to rise from 5.8% to 5.9%. If that happens, then the Aussie might trade lower.
This analysis is taken from today’s Daily Market Forecast, which also includes trade opportunities on: EURUSD, USDCHF, GBPUSD, AUDUSD, NZDUSD and USDJPY.
Get it HERE: Vladimir’s Markets Forecast
Trade safe friends. Happy trading!
