The last day of the previous week of the foreign exchange market was characterized by very little activity due to the fact that almost all major banks were closed celebrating Good Friday. Although the US banks were active and some economic indicators were released, the pair moved in a narrow 40 pip range.
Due to the fact that a large part of the world celebrates Easter and most European banks are closed, we expect movement similar to the one seen Friday and price is likely to stay between the resistance located at 1.2843 and the support at 1.2750. We recommend a lot of caution if trading, because the low volume can also create sudden moves.
The only economic indicator released today is the American ISM Manufacturing PMI, a survey based on the opinions of about 400 purchasing managers from the Manufacturing sector. Usually values above 50 indicate optimism and increased manufacturing activity; for today’s release no change is expected from the previous value of 54.2. The release is scheduled for 2:00 pm GMT.
Similar to the other pair, the GBP/USD moved Friday in a 40 pip range and no major developments took place.
The levels to watch today are 1.5220 as resistance and 1.5140 as support but the trading session will be a difficult one and the pair’s movement will be hard to predict due to the low volume and alternating volatility.
The UK banks are closed, no economic indicators are released and the US ISM Manufacturing PMI is not expected to create a lot of movement unless a major difference is posted between the anticipated number and the actual one.
Written by: Bogdan Giulvezan
The article above is based on the writer’s 4 year experience and it does not constitute trading advice or investment recommendations, just a personal opinion and view on the market.