Alpesh Patel
InvestingBetter.com
General market theme
On Friday price action in the major instruments was rather limited and with volatility at low levels we didn’t notice any changes in the technical outlook of the instruments we monitor in our report. With little in terms of fresh news or reports scheduled for release the price action was confined around the same areas that the Euro and the Pound had been trading on earlier in the week and the FTSE 100 remained unchanged. Turning our focus to this week however we will have lots of fresh news and reports from Europe and the US to affect the major money markets hence we expect volatility to pick up starting tomorrow as today’s calendar is seemingly empty.
Price action highlights
The Euro attempted a correction on Friday making an effort to rally above the 1.1300 level but it failed and instead spent the day trading between that level and 1.1250. After the steep decline earlier in the week the Euro has found support ahead of the 1.1250 level and it seems that it’s gathering momentum to move to the upside once more if the Dollar remains weak in the days ahead of us and the key level to overcome here is the 1.1300 barrier. We expect price action to remain limited today but we can’t exclude the possibility of another attempt at the resistance level later in the day.
The Cable displayed a rather volatility behavior on Friday unlike the Euro and even though the first half of the day included a rally to the upside for the UK currency that climbed above the 1.4200 resistance later in the day the Pound corrected lower giving up its gains. This morning we’re looking at the Cable trading around the 1.4150 area and the momentum at this time is bearish and the currency is looking downwards, even though there are no reports scheduled for release today we could see an extension of the decline all the way to last week’s lows at the 1.4100 level.
Focus of the day
The Economic Calendar today is virtually empty of anything significant that could have an effect on the price action of the major instruments. Later in the day the Housing Market index from the US is worth taking note of even though it will have little effect on the Dollar at this time and just a bit earlier Fed’s Dudley is speaking at an Economics Conference so we might want to hear what his views on the domestic economy are.
Economic Calendar
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