Trading Week Ahead: EURUSD Reacts Bullish at Key Support

A politically charged and data-driven week lies ahead, as markets brace for remarks from President Trump, a US GDP, and early PMI signals. With macro momentum heating up, traders should prepare for elevated volatility and fast shifts in sentiment.

👉 President Trump Speaks
Markets will be on edge as Trump takes the stage Wednesday. Unexpected comments on the economy, interest rates, or foreign policy could spark immediate volatility across USD, equities, and yields.

👉 US GDP
Thursday’s Q4 GDP release is forecast at 4.3%, following a blockbuster 3.8% print in Q3. A strong surprise may challenge dovish market positioning. A miss could support risk sentiment and pressure the dollar.

👉 US Flash PMIs
January’s flash PMIs are expected to rise modestly, with services seen at 51.7 (previous 51.4) and manufacturing at 51.9 (previous 51.8). Gains would suggest steady growth, supporting USD strength. Weaker readings may revive growth concerns.

Date	Time	Instrument	Event
Tuesday, Jan. 20	8:00 AM	GBP	Claimant Count Change
Wednesday, Jan. 21	2:30 PM	USD	President Trump Speaks
	4:00 PM	USD	Pending Home Sales
Thursday, Jan. 22	2:30 PM	USD	GDP
	4:00 PM	USD	Core PCE Price Index
Friday, Jan. 23	4:00 AM	JPY	BoJ Interest Rate Decision
	8:00 AM	GBP	Retail Sales
	3:45 PM	USD	Flash Manufacturing, Services PMI

Technical Analysis with FVG Strategy

This technical analysis uses the EMA 20 and EMA 50 to determine market trends, alongside the Fair Value Gap (FVG), which refers to price imbalances caused by aggressive movements, signalling key entry and exit points. This strategy applies to EURUSD, GBPJPY, US30, and XAUUSD, providing insights into both last week’s market opportunities and the current one.

Opportunities to Watch This Week

EURUSD

Market Context: EURUSD held last week’s support as the full candle failed to close below the level, triggering a strong bullish move. Along the way, price cleared a swing high and is now pushing toward resistance, targeting the previous month’s high where liquidity may be positioned.

Bullish Scenario (Preferred): Continuation toward resistance and a potential sweep of the previous month's high.

Bearish Scenario (Alternative): A pullback into the support zone before any further upside continuation.

FVG Setup: No fair value gap formed this week.

GBPJPY

Market Context: Following last week’s breakout from the range and rally, GBPJPY pulled back into support where buyers stepped in again, sending price higher. It is currently trading between support and resistance.

Bullish Scenario (Preferred): A break above resistance in line with the prevailing uptrend, with a potential target at the marked swing high.

Bearish Scenario (Alternative): Rejection from resistance and a pullback into Monday’s low.

FVG Setup: No FVG was formed this week.

XAUUSD

Market Context: Gold continues its strong uptrend, reaching new all-time highs and maintaining a clean bullish structure.

Bullish Scenario (Preferred): Trend continuation remains the primary view, supported by strong price action.

Bearish Scenario (Alternative): A pullback to fill imbalances left by recent aggressive moves.

FVG Setup: Last week's FVG was tested and successfully reached a 2:1 RRR.

US100

Market Context: After last week’s liquidity sweep and resistance test, the Nasdaq weakened and is now back at support, where another swing low has been taken out.

Bullish Scenario (Preferred): Buyer reaction from support, with a potential move to fill the overnight gap created by the prior sell-off.

Bearish Scenario (Alternative): A daily close below support could extend the move lower toward the next marked swing low.

FVG Setup: No FVG was formed this week or last, due to a lack of strong directional aggression.