Weekly trade idea on EUR/USD
|Week: 19-23.10.2020
Key event: EUR. manufacturing and services PMI
The Purchasing Managers' Index (PMI) indicates the expansion in both services and manufacturing industry. It is a key indicator of the conditions in the European economy. When it is above 50, it represents expansion in the economy, and when below, it means there is a contraction in economic activity.
Previous data was slightly above 50 points. This week it is expected to have similar results than before.
Because of the expectation, we should not see a lot of trend movement in the euro during the week, but a continuation inside the actual range. If the final value turns out to be bigger than expected, we could see a strong up movement in the euro. Contrarian escenario will cause a down movement.
Key Levels:
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Resistance: 1.1823, 1.1900
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Support: 1.1610, 1.14270
Price is contained between 1.1823 and 1.1610 levels. During the week, prices should fluctuate between those levels, giving us the opportunity to trade in both directions. Without the factor of surprise regarding the values, there should not be a breakout from actual range/consolidation.
Call to Action/Trade Idea
We might expect prices to either become closer to the relevant levels during the week, but not enough to affect its consolidation regarding the consolidation levels. We will look for sell signals close to resistance levels and buying signals close to suport levels.
In case of a surprise regarding results, we could see a consolidation breakout and a start of a new trend to next support and resistance levels.
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