With a relatively light roster of events last week, price action for the majors was largely determined by market sentiment. Most of the currency pairs took their cue from the equities markets. From what I observed, the dollar gave up ground on days when stocks fell but traded higher when stocks rallied.
This week will probably be a tad different since we have a handful of market-moving events on tap. PMI reports are due from the U.K., ISM data as well as the jobs report for May are scheduled from the U.S., and the ECB and BOE are both anticipated to announce their rate decisions.
I’m pretty sure this week is gonna be a pretty volatile one. Oh gosh, I hope it turns out to be a really good one!
See that? The pair keeps on making higher lows. I plan on jumping in on the uptrend, but I’ll be patient and wait. I’m eyeing a retest of support around the moving averages or a break of last week’s higher above 1.3050.
My view on GBP/USD is similar. Technically, you can see the price is above both the SMAs and that the pair found significant support at 1.5150. I’m looking to buy again once price retests that level.
Let’s see how this week’s events affect the pairs!