The Euro fell to as low as 1.0462 during last Friday’s trade versus the greenback but since then gradually recovered some 70+ points and currently trades at the exchange rate of 1.0538 amid the U.S. Dollar Index touch highs of 100.27 points.
As markets anticipate Wednesday’s FED interest rate decision and monetary policy statement, the current technical setup seems like a good opportunity to continue selling the pair toward 1.0350. Traders should bear in mind 1.0550 as a solid break could see the rate advancing to 1.0650 and later 1.09 (high of last week). In some 8 hours (18:45 GMT) traders will be looking for clues and information about the Eurozone and the single currency as ECB’s President Mario Draghi has planned speech.
Across the English Channel the British Pound fell below an important exchange level of 1.4800 versus the dollar. Only on a few occasions in the past 30 odd years this level gave up and reasons were due to world financial crashes. For that reasons the Sterling comes under a heavy pressure heading towards the Bank of England’s Wednesday fundamental news such as BoE Minutes and its vote on interest rates scheduled for Wednesday at 09:30 GMT. Traders should bear in mind that 1.4800 level as break above could see exchange advancing to 1.4950 short term. However, looking at the recent pace of sell offs in GBPUSD, the rate is more likely to test 1.4580 (a 161.8% extension from the range 1.4950 – 1.5550) where traders would look for other opportunities.
As we expect high volatility this week as the economic calendar is filled with important news releases, we strongly advise to always use protective measures.
As markets anticipate Wednesday’s FED interest rate decision and monetary policy statement, the current technical setup seems like a good opportunity to continue selling the pair toward 1.0350. Traders should bear in mind 1.0550 as a solid break could see the rate advancing to 1.0650 and later 1.09 (high of last week). In some 8 hours (18:45 GMT) traders will be looking for clues and information about the Eurozone and the single currency as ECB’s President Mario Draghi has planned speech.
Across the English Channel the British Pound fell below an important exchange level of 1.4800 versus the dollar. Only on a few occasions in the past 30 odd years this level gave up and reasons were due to world financial crashes. For that reasons the Sterling comes under a heavy pressure heading towards the Bank of England’s Wednesday fundamental news such as BoE Minutes and its vote on interest rates scheduled for Wednesday at 09:30 GMT. Traders should bear in mind that 1.4800 level as break above could see exchange advancing to 1.4950 short term. However, looking at the recent pace of sell offs in GBPUSD, the rate is more likely to test 1.4580 (a 161.8% extension from the range 1.4950 – 1.5550) where traders would look for other opportunities.
As we expect high volatility this week as the economic calendar is filled with important news releases, we strongly advise to always use protective measures.
