The European currency finished last week by rising against the US dollar after the bounce from 1.1430 support. There was a bullish engulfing on the daily chart on Friday. It helped buyers to close week above important level 1.15.
However, there are some fundamental risks, which may affect on the EURUSD in the middle-term. Most of all it concerns situation in Italy with their budget plan, which still is not approved by the European Union.
While the Cayman indicator is in neutral zone (57% of buyers), we are ready to buy the euro against the US dollar from current levels with Take Profit at 1.16
The pair starts this week in a short range losing about 5 points since the opening. The British Pound is under pressure still after bouncing from 1.3255 and 1.3170 resistance levels. Brexit talks still going on, while investors is waiting from UK’s government further details about deal between UK and EU.
The technical indicators say the pair is bearish in a short-term, while buyers can’t move to 1.31 level. However, we are waiting for the retest of 1.3170 resistance level and expect news regarding Brexit deal on the second part of the week.
Our targets for,
EURUSD – is buying to 1.16 level
GBPUSD – is selling from 1.3170 level