GBP/USD:
The British currency will be waiting for Nationwide GPI which is expected to remain weak at -0.1% vs. -0.2%, and Manufacturing PMI is expected to improve slightly above the 50.0 barrier to 50.1 vs. 49.6.
The pair failed to break above its trend line resistance which stands around the 1.5780 level, and closed yesterday’s trading well below that resistance. As we have stated before in our previous reports, traders need to be cautious regarding long positions, technical indicators have turned slightly lower again, and as long as the trend line resistance holds, then further downward pressure could be seen during the day. The next support stands around 1.5720 followed by 100 DAY MA which stands at 1.5665.
Nationwide HPI: A leading indicator for the housing sector published quarterly that measures the change in the selling price of homes.
Manufacturing PMI: A composite index based on 9 components. The general index is based on a survey made to purchasing managers in the manufacturing industry, which measures the health of the industry during the reported month. The index has a significant impact during normal and risk markets.
Switzerland
USD/CHF: The Swiss franc will be waiting for Y/Y retail sales, which are expected to drop slightly to 1.6% vs. 1.8% during the previous month, and are expected to have a significant impact on USD/CHF during the day.
Technically USD/CHF failed to break below its 100 DAY Moving Average on the daily chart many times since the beginning of the week and closed yesterday’s trading well above that support. The pair began the day slightly higher, but another disappointing result from Retail Sales may lead to further upside risk toward the next obstacle resistance, which stands at 0.9260 followed by 0.9300. Technical indicators are clearly higher, especially after Stochastic Oscillator crossed over to the upside.
Retail Sales: A leading indicator for the sales industry that measures the change in the total value of sales on a retail level during the previous month, excluding automobile sales.
Europe
EUR/USD: Greece debt talks continue as no deal has been announce yet, but there is some speculation that a deal could be announced by the end of this week. In the meantime, the European currency will be waiting for Final Manufacturing PMI, which is expected to remain stable at 48.7, and CPI Flash Estimate is expected to drop slightly to 2.7% from 2.8% during the previous month.
Technically the pair failed to break below its 55 DAY Moving Average on the daily chart during yesterday’s trading, while the pair began the day slightly lower trading at that MA. On other hand, the Stochastic Oscillator has crossed over to the downside again, and as we stated before in our previous reports, traders need to be cautious regarding long positions as there is a 60% chance that the upside risk is almost over, and the general downtrend may resume during the week. The next support stands at 1.3000.
Manufacturing PMI: A composite index based on 9 components. The general index is based on a survey made to purchasing managers in the manufacturing industry, which measures the health of the industry during the reported month. The index has a significant impact during normal and risk markets.
Consumer Price Index: A leading inflationary index that measures the change in the prices of goods and services purchased by consumers, including energy and food prices.