The euro came under further pressure and tumbled towards 1.07. Many market participants wonder now, how far the single European currency can sink. Having already lost six big figures in the aftermath of Trump's victory, the parity bet returns into investors' minds. Traders see about a 45 percent chance the euro will sink to $1 in 2017. Some analysts forecast the euro will drop to 95 cents by the end of next year. We will have to wait and see.
EUR/USD
Looking at the weekly chart, we see a slightly ascending support line which is currently around the 1.06-level. Having declined below 1.0770, the euro might tend to test this lower support before any major pullbacks occur. The euro found some halt above 1.0710 and as long as it remains above 1.07 it may correct some losses towards 1.0805 and 1.0850.
GBP/USD
Upcoming bearish momentum?
The British pound was unable to climb back above 1.26 and we now see a fresh resistance at around 1.2560/70, limiting gains in the GBP/USD. The recent support at 1.2350 is still intact and if the pound drops below that level and further below 1.23 we expect the pair to decline towards 1.2150.
There is plenty of interesting economic data on today's calendar and special attention should be paid to the U.K. Consumer Price report scheduled for release at 9:30 UTC, BoE Governor Carney's speech at 10:00 UTC, the Eurozone GDP numbers alongside the German ZEW Survey at 10:00 UTC and last but not least, the U.S. Retail Sales Report due at 13:30 UTC. Each of these reports could be market moving and we will thus prepare for higher volatility.
Here are our daily signal alerts:
EUR/USD
Long at 1.0775 SL 25 TP 20, 30
Short at 1.0740 SL 25 TP 40
GBP/USD
Long at 1.2530 SL 25 TP 25, 50
Short at 1.2440 SL 25 TP 20, 40
We wish you good trades and many pips!
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