Major Currency Pairs Fundamental and Technical Analysis

Fundamental Analysis

Today

The Markit Manufacturing PMI will be released for both France and Germany.

The manufacturing sector dominates a large part of GDP. Results above 50 will be bullish signals for the EUR, whereas anything less than 50 will be bearish.

Wednesday

Canada will take the center stage with the Bank of Canada (BoC) Interest Rate Decision. If the BoC adapts a hawkish approach and raises the previous rate of 0.5%, this will have a bullish impact on CAD. If the BoC goes the way of the doves and maintains the current rate, we’ll be looking at a negative impact on CAD.

Thursday

On Thursday, we will witness another OPEC meeting in Vienna. Any big news out of here will be important for those looking to make a move in oil this week.

Friday

It’ll be Friday before you even know it and we will be looking towards the US GDP data coming out for Q1 of 2017. Higher GDP equals a stronger economy. How will this news affect your EUR/USD positions? Let’s have a look at some technical now.

Technical Analysis

EURUSD

I am looking at the EURUSD and all I see is a bullish action. In the last 9 trading (Daily) sessions, we had 8 bullish candles. The closest resistance area is 1.1400 and the next major level is at 1.1600.

GBPUSD

The price action of this pair is showing bullish connotations. There was an inside bar on the Daily chart formed on Monday. Price seems to be spending some time around the 1.3000 area, but that is totally normal. The market is waiting for the UK election results from the 8^th of June, so we might see more hesitance until then. From a technical point of view, the next resistance area is at 1.3500. The secondary resistance (price target) is at the level of 1.4000.

USDJPY

The USDJPY is locked in a range between 108.00 and 115.00. I am expecting to see the price reaching to the 108 handle first, before we see more clear sign of direction.

This post was written by ColibriTrader