FOREX NEWS: EASTER MONDAY THROWS MARKETS INTO UNPREDICTABILITY
EUR/USD
Forex News: The pair moved mostly sideways Friday and was affected by thin volatility generated by the approaching of the Easter Holiday. U.S. economic data was disappointing but this didn’t have a strong effect on the pair’s movement.
Technical Outlook
The last trading session doesn’t hold enough clues for an accurate prediction and on top of that, today most European banks will be closed, celebrating Easter. This means that price action will be substantially affected and technical analysis is inconclusive. From a longer term perspective, as long as the pair remains below the 50 period Exponential Moving Average, our view is slightly bearish.
Fundamental Outlook
Banks across Europe will be closed today, celebrating Easter Monday. This will almost certainly affect the pair’s behaviour, generating irregular volatility and possibly erratic price action.
GBP/USD
Friday the pair showed bullish action but the resistance at 1.2550 wasn’t threatened and volatility remained relatively low, mostly due to Good Friday.
Technical Outlook
Price action will be unpredictable today and affected by the Easter Holiday. Volatility can quickly change from very low to very high and the pair is likely to move erratically. Once behaviour returns to normal, we expect a touch of 1.2550 if price remains above the 50 period EMA.
Fundamental Outlook
UK banks will also be closed in observance of the Easter Holiday and no major economic indicators will be released. Price movement will be affected so we recommend caution.