FOREX NEWS: PREPARING FOR A SLOW MONDAY, WHICH LACKS MAJOR ECONOMIC RELEASES
EUR/USDForex News: The US Employment data which came out Friday showed that fewer people were employed during the previous month but the number was close to estimates so the market did not travel a substantial distance in either direction.
Technical OutlookAlthough the pair moved below the important level of 1.3710, we consider that moves above it are still a distinct possibility. This is based on the fact that the break wasn’t a clear, decisive one and the Relative Strength Index is indicating an oversold condition, which makes moves higher more probable. If price will indeed move north, 1.3760 will act as resistance but keep in mind that the latest momentum favors the bears so moves lower are not out of the question. We may also experience a slow trading day because the fundamental scene lacks major economic releases.
Fundamental OutlookThe German Industrial Production indicator is released at 6:00 am GMT with an anticipated decrease from the previous 0.8% to 0.3%. The indicator measures the total output of German industries and higher numbers are perceived as bullish for the Euro, considering the fact that Germany’s economy is an important part of the entire Euro Zone economy. However, the indicator is considered to have a medium-impact on the pair’s movement.
GBP/USDFriday was a day with a lot of choppy movement, which was very difficult to trade, especially on the lower time frames. This was mostly due to the US Non Farm Employment report that posted a reading close to the anticipated value.
Technical OutlookThe pair is trading below the level of 1.6600 and the Relative Strength Index is not showing signs of an oversold market. This makes us believe that lower moves will follow, but before that can happen, price will probably touch 1.6600 again. First support is located at 1.6480 but such a distance is less likely to be traveled today; resistance is located at 1.6600, followed by 1.6650.
Fundamental OutlookToday’s trading session lacks British data releases, a fact which may bring us slow and potentially ranging price action.
