EUR/USD

The new week is starting with heavy-duty economic data on the euro and USD. There are two European Central Bank's meetings on Tuesday and Thursday. US Federal Reserve Chair Yellen speech and the ECB press conference minutes are due on Thursday. Traders, analysts, and economists will focus on Draghi's speech on Thursday. As we have been discussing, the ECB will start bond purchasing program in March, this meeting can unveil details of an inflation forecast and the QE program. The ECB action will put on more pressure on the single European currency. Today, traders eye Spain's and Italy's manufacturing PMI, the final manufacturing PMI, Italy's monthly and quarterly unemployment rate, the euro zone unemployment rate, and CPI flash estimates. On the dollar's side, ISM manufacturing PMI and personal spending are due in the US. Today, trading has been loaded with heaps of economic data. Ahead of these data, the USD trading higher against the euro at the Asian session.

Technical view

The broken support base turned to a resistance zone between 1.1260 and 1.1280. Again, we recommend using every rise to sell with targets at 1.1100, 1.0970, and 1.0930. The panic will be triggered below 1.1150. In case, a h4 candle closes below 1.1150, bears can challenge mentioned lower targets. Selling is below 1.1150. The prices are closed and trading far below hourly moving averages.

Resistance: 1.1210, 1.1260, 1.1300.

Support: 1.1175,1.1100, 1.0970.

Until prices close below 1.1310, use every rise to sell. The weekly resistance is found between 1.1310 and 1.1350. The trading pattern is framed between 1.1280 and 1.1175. Forgot buying, until the price closes above 1.1280.

GBP/USD

The new week is starting with heavy-duty economic data on the pound sterling and the US dollar. The cable managed to erase most of its January losses in the previous month and gained 3%. Two European Central Bank's meetings are scheduled on Tuesday and Thursday. BoE Governor Carney's speech and Yellen's speech are due. Today, traders eye UK's manufacturing PMI and Nationwide HPI data. We expect the UK's manufacturing data to provide an uptick to 53.5. Besides, US ISM manufacturing PMI is the key economic data. We expect neutral reading or a tick below expectations. We are bullish for the British pound against crosses, but still remain cautious about the US dollar.

Technical view

The cable closed marginally higher last week. Technically, the cable was rejected at 20Wsma and 100Dsma in the previous week. Today, at the Asian session the pair opened on a bearish note. We can find a strong support base between 1.5350 and 1.5290 50Dsma. We recommend fresh intraday selling only below 1.5380. The intraday resistance is found between 1.5465 and 1.5480. The panic will be triggered below 1.5380 with downside targets at 1.5330, 1.5315, 1.5280, and 1.5200. Bulls can challenge 1.5500 and 1.5560, in case the price closes above 1.5480. The near- and medium-term trend will turn to positive, in case the price closes above 1.5500 on a weekly basis.

Resistance: 1.5430, 1.5465, 1.5480

Support: 1.5400, 1.5385, 1.5330.

From the above analysis, we recommend you:

selling below 1.5380 and

buying above 1.5465.