Forex News: Choppy Price Action Amid a Lackluster Fundamental Scene

EUR/USD

Forex News: The Non-Farm Payrolls released Friday showed a disappointing reading of 148K (anticipated 190K) and this initially generated a climb based on US Dollar weakness. However, the previous value was revised from 228K to 252K and this allowed the greenback to recuperate the losses.

Choppy Price Action Amid a Lackluster Fundamental Scene 1

Technical Outlook

After a long move up, the pair failed twice to move above the resistance at 1.2092, which shows that the uptrend is in need of a deeper retracement, with 1.2000 as first target. It is very possible to see a touch of this level today but we don’t expect the move to extend past it, especially because the 50 period Exponential Moving Average is in close vicinity and will provide extra support.

Fundamental Outlook

At 10:00 am GMT the Eurozone Retail Sales come out, showing changes in the total value of sales performed through retail outlets across Europe. However, most European states have already released their retail sales data, so this release is less important. Higher numbers than the anticipated 1.4% usually strengthen the Euro.

 

GBP/USD

Friday’s price action was mainly influenced by the mixed NFP report, which showed a worse than expected number but the previous value was revised better, thus creating a mixed reaction.

Choppy Price Action Amid a Lackluster Fundamental Scene 2

Technical Outlook

Given Friday’s choppy price action, the next direction is difficult to anticipate but as long as the pair is trading above 1.3550, the bias is slightly bullish and 1.3600 is the first target. A move below this level will make the 50 period Exponential Moving Average the target for the day. However, due to the lack of economic releases today, it is probable that we will get a slow and possibly ranging trading session

Fundamental Outlook

The Pound will not be affected today by any scheduled economic releases, so the technical side will decide the pair’s direction.

 

Written by: Bogdan Giulvezan

The article above is based on the writer’s 8-year experience and it does not constitute trading advice or investment recommendations, just a personal opinion and view of the market.