FX Outlook

This trading week started at a slower pace as there was no major fundamental news to move the market or increase market volatility. As the week progress, there seems to be a lot of important economic news which traders are anticipating. Later today, we will be expecting the consumer price index from the UK which is expected to come at 0.0%, German ZEW economic sentiment is also expected at 18.0 slightly lower than the previous month, from the US: core retail sales figures are expected at 0.3% also lower than previous month. All these economic data are likely to increase the volatility of the market because these are major news from all major global markets (Germany, UK, US).

Technically, usdjpy dropped below the 120.00 level and still trading below this level, we might see price rally back to 120 and probably test 121 levels again from the current price of 119. If bulls fail to push price back to 120, we might probably test 118 to the downside. Eurusd is still bullish at 1.120 support level and price might test 1.15 again as long as we trade above 1.1200. GBPUSD has also bounced off from 1.5367 support level; this is a confirmation of a possible move back to 1.55