After seven days of consolidation for euro/dollar in Friday the data in US tilt the scales in Dollar's favor. Consolidation was at levels about 1.1250, as the inflation rate for August were above average expectations. World-Signals.com predict that the inflation rate will be the main reason for Fed's rates to rise next year. The main focus this week will be for FOMC Rate Decision, where we don't expect changes in Fed's rate policy. World-Signals.com strategy this week will be to bet on the US Dollar and expect levels about 1.1070. The key support levels this week will be at 1.1070 and resistance at 1.1225.
The pressure for the US dollar will continue this week, although it will be weak and not so frequent. US Dollar will loose some of his price over the Euro's strong support. The main Dollar lost will be just in the beginning of this week and by the end, it will regain some influence again. The most important events witch will take place in the market’s movements are Germany's GBP on Wendsday, Jackson Hole Symposium in Thursday and Friday. This week's strategy of World-Signals.com will be to buy long positions in Monday and to exit at levels 1.1420 witch is the main resistance level.
In the past week World-Signals.com saw the US dollar taking over above the Euro in the second half of the week in cause of the good data about the working places in USA. This week the fundamental key information about the market that can occur and have influence are from GDP in Germany and the Euro Zone in Friday and Retail Sales in the US. World-Signals.com expects attempt of consolidation from EUR/USD for a while at the same levels. First key support level is at 1.1045, as the test of this level will occur about 1.0960. First level of resistance will be around 1.1160 followed by 1.1233. The next event will be the US Dollar's attempt at levels 1.0960 and below.
As we know the US dollar was escalating his price over the Euro in the last week. The problems are to be continued about the Euro zone from Brexit and the new terrorist attacks are heating up the measures about the security of EU according to World-Signals.com. As the fear of terrorist attacks is escalating, the stability of Euro will be fragile. The most important event of this week will be the Fed Interest Rate Decision in the US. As we speak expect data about GDP and CPI for the second quarter half of this year. We predict several attempts for attack this week with key support level at 1.0910 mainly from the ref in England. At any chance we expect very close positioning about 1.0910 level and testing for this week. First level of resistance will be around 1.1025, followed by 1.1060. World-Signals.com trading strategy for the upcoming week is trading EURUSD, using the first key of resistance level and opening a short position with main objective 1.0910 and below.
The new week will start with Independence Day in USA and low movements on the market. The first coming important weekly events according to World-Signals.com will begin at the middle of the week, where we expect Trade Balance's info, ISM Service , FOMC Minutes in USA and Non-monetary's ECB meeting with ECB President Draghi speech at 7 GMT. Thursday will begin with ECB Monetary Policy meeting at 11:30 GMT. This week take most your time and pay attention to Friday's American US Nonfarm Payrolls and Unemployment rate. The data is very important, because as we know from last month there is very low percentage in new opening working places. If the scenario from last month repeats there is room for concern in unemployment market's rates and stability. Brexit's event will remain his influence in the economy all around the world as the tiniest rumors could collapse the market. World-Signals.com new strategy is to wait the rush of the euro in the first half of the week and to open short positions with main objective 1.10 and less.
After the Brexit's 'high tide' vote progress, Great Britain will remain topic number one for a long time according to World-Signals.com. Main source of winning positions for these days will be US dollar and Gold, as we expect the dollar to continue his strong influence in global markets for a while. Euro will continue to collapse by the Brexit's events and the unfortunate split of UK and EU for a couple of weeks. As we speak for important news we advice to take your time and read the USA Bank Stress test info in Monday. In Thursday it’s important to draw your attention to ECB Meeting in 9 a clock GMT, and the next important event for USA which is ISM Index at 14 GMT sharp. Overall as may World-Signals.com say - 'the big picture' for this week is pointing dynamic volatility by the markets as we consider Euro/Dollar to reach levels below 1.08.
Brexit's topic number one for all the trading market movements around the globe. Mainly we will see pressure among the Pound; also Euro will suffer from high instability by the vote in Thursday. Although Fed's collapsed the last hope for high interest rates, US dollar remained strong and at one point won the battle with the Euro mainly from doubts that England can exit the EU. Take in mind that the market's movements this week will follow mainly the sociological analysis for the turn of ref's events by Thursday. World-Signals.com point of view for the upcoming events is that Great Britain will remain in the Euro union. That's why straight after the events pound and euro will bloom among the other currencies. Key level support for EURUSD is 1.1130, first resistance level in 1.1415. World-Signals.com strategy advice for this week is to buy Euro at and above levels of resistance 1.1410/1.1460.
The day June 15th at 18:00 GMT is the most important day and time for June and probably for the summer. In this time is expecting Fed interest rates decision. World-Signals.com expects high volatile market as depends on the situation EURUSD may move more than 400 pips within the first hour of trading. Ahead FOMC Interest rates decision the dollar recovery some of the losses by the U.S. Non-farm payrolls report last week. The recovery may continue till Wednesday at 18:00 GMT. The other important events in the week are Retail Sales on Tuesday at 12:30 GMT and Thursday CPI and Core CPI at 12:30 GMT. For the Euro Zone the most important events are EU CPI on Thursday at 9:00 GMT and Friday ECB President Draghi's Speech at 15:00 GMT. The support level of EURUSD is formed at 1.1135 while resistance level we see at 1.1415. After Fed events on Wednesday one of these levels will down. World-Signals.com trading strategy this week is to keep short positions until Wednesday. Interest rates rise with 25 bps is already generated by the market so is possible to see weak dollar at the mid of the week.