While not much news is expected today other than the US’s New Homes Sales the week is slated to possibly be pretty exciting for Forex traders. Firstly, following today’s US housing figures, we will see further housing numbers from the US along with Durable Goods orders on Wednesday. The US data will be critical to whether the USD will extend its rally following last week’s FOMC Meeting.
The big event for the week will be the EU Summit which starts on Thursday. EU leaders will be discussing the future of bailouts, Eurobonds, and collective responsibility. The Euro is expected to see volatility before and during the summit as Forex traders will be reacting to news and rumors of the potential EU actions.
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GBPUSD & EURUSD below their uptrends.
Forex traders should keep their eyes on these two charts of the GBPUSD and EURUSD. Each pair had been in an uptrend since the beginning of June but have recently lost their momentum. As such, until another support base is created, each pair will be vulnerable to selling pressure which could trigger a retest of their 2012 lows.