Daily Briefing, Feb 25: How to Trade EUR/USD & GBP/USD on Monday?

On Monday, the Greenback was little changed during the Asian after POTUS Trump announced that he would delay an increase in tariffs on Chinese goods. In his tweet, President Trump stated that progress had been made in areas including intellectual property protection, technology transfers, agriculture, services, and currency.

Besides that, he also stated that he would plan a summit meeting with China if the progress on the trade deal continues.

On the economic front, we don’t have much on the economic calendar. Therefore, the market is likely to trade technical indicators. Let’s look at EUR/USD and GBP/USD trade plans.

EUR/USD -Trading the Sideways Range

The Euro-to-Dollar currency pair is trading in a thin trading range of $1.1370 – $1.1325. The bullish momentum is weaker as continued concerns over Eurozone growth weigh on the Euro. On the other hand, the dollar is also weakened after the FOMC meeting minutes released during the previous week.

EUR/USD is supported above $1.1325. The particular support is extended by a bullish trendline on the hourly chart. The resistance can be seen at $1.13700. The breakout is likely to determine further direction of the market today.

EUR/USD – Key Trading Levels
Support Resistance
1.1314 1.1354
1.1295 1.1375
1.1255 1.1415
Key Trading Level: 1.1335

EUR/USD Trading Plan
The idea is to stay bullish above $1.1325 and bearish below $1.1370 with a 20 pips stop loss and 30 pips take profit. The idea is valid until the trading range is intact.

GBP/USD – BOE Gov Carney Speaks In Focus

The British Pound remains unchanged at the beginning of what could be a volatile week. The market failed to produce any latest updates on more MP resignations and Theresa May’s leadership, hence keeping the Sterling steady but vulnerable. Today at 10:00 (GMT), the BOE Governor Carney is due to conduct a press conference in London.

On the 4-hour chart, GBP/USD is trading sideways below a strong resistance level at $1.3100. At the moment, the pair is trading at $1.3075 and it may face an immediate resistance near $1.3100 and $1.3145 along with support near $1.2970.

Daily Technical Levels
Support Resistance
1.2988 1.3101
1.2922 1.3147
1.2809 1.3259
Key Trading Level: 1.3034

GBP/USD – Trade Plan
Today, the idea is to stay bearish below $1.3100, with a stop above $1.3120 and a take profit of $1.3050. While buying is preferred above $1.3035.

Good luck!