We welcome you to the trading month of July. While the U.S. dollar had a strong second quarter against all the major currencies, the EUR/USD remains stuck to a sideways trading range between 1.1850-1.15 since mid-May. The British pound fell victim to the dollar’s recent strength and marked a fresh low at 1.3050 from where we saw the start of a relief rally towards 1.32. Whether this rally proves to be sustained remains to be seen.
Even though the greenback remains the world’s most traded reserve currency, trade tensions between the U.S. and its trading partners are still a key concern for investors.
What will be important this week?
Top event risk will be Friday’s Nonfarm Payrolls report. Before we come to Friday’s NFP figures we will pay attention to the ISM Manufacturing Index, scheduled for release today at 14:00 UTC and the ISM Non-Manufacturing Composite on Thursday. On the same day we have the FOMC Meeting minutes from the Fed’s last meeting on June 13.
Taking a look at the technical picture, we will keep tabs on the euro’s sideways trading range between 1.1850-1.15 and the cable’s downward trend channel between 1.3350-1.30.
GBP/USD
As long as the 1.33-1.3350-resistance zone remains unbroken, we expect the cable to resume its downtrend towards 1.30. A break above 1.3350 could open the door for a bullish run towards 1.35.
Here are our daily signal alerts:
EUR/USD
Long at 1.1710 SL 25 TP 15, 40
Short at 1.1625 SL 25 TP 20, 40
GBP/USD
Long at 1.3230 SL 25 TP 20, 40
Short at 1.3130 SL 25 TP 15, 50
We wish you good trades and many pips!
Disclaimer: Any and all liability of the author is excluded.