The EURUSD pair during the last week found support at around the 1.3500 level, and then climbed back above the 1.3700 level. The pair on Friday retraced some of the gains and closed below the 1.3700 level. I think the pair can continue to trade higher in the upcoming week. There is also a bullish convergence noted on the 4 hour chart, as shown below. So, I think we should look to buy valleys in the short term.
The pair might trade higher from the current levels or move lower close to the 1.3640 support region before it continues to move higher again. So, if the pair trades closer to the support levels and the trend line as plotted on the hourly chart shown below and forms a bullish candle pattern, then we will jump into a buy trade. Remember, the pair needs to hold the 1.3620/10 level in order for our bullish bias to be valid.
Initial target should be around the 1.3780 level, and final target could be around the 1.3890 level. Stop should be placed below the trend line and support region as highlighted in the chart above.
Major events scheduled in the upcoming week
Another eventful week came to an end. Despite there was no major market moving economic event in the US, we noticed some major swings in some of the major pairs. The EURUSD found support at around the 1.3500 and climbed back above the 1.3650 level. The GBPUSD registered a new two year high after the encouraging employment data. The USDJPY dived down towards the key swing level of 102.00, as there was some risk-off theme noted in the market. The upcoming week could be a very interesting one, as we have a lot of fundamentals to be released, including the most important, the Fed interest rate decision and policy statement.
Let us look at all major events lined up in the upcoming week.
Sunday – BOJ Monetary policy meeting minutes.
Monday – German IFO business climate index, the US new home sales data and Australia’s NAB consumer confidence.
Tuesday – UK GDP data, US core durable goods orders and CB consumer confidence.
Wednesday – Fed interest rate decision and RBNZ interest rate decision.
Thursday – Spanish GDP data, German unemployment data, US GDP data and pending home sales figures.
Friday – German retail sales data, Euro zone CPI figures, Canada’s GDP, Chicago PMI and Michigan consumer sentiment.
This analysis is taken from Weekly Market Forecast, which also includes trade opportunities on: GBPUSD, EURGBP, USDJPY, EURJPY, AUDUSD, NZDUSD, EUAUD, GBPAUD, AUDNZD, EURCAD, GBPAD, USDCAD, EURCHF, USDTRY, USDZAR and INDICES.
Get it HERE: Vladimir’s Markets Forecast
Enjoy the weekend friends!
