This pair is closing in on the highest of its short-term vary forward of what seems to be a data-light session.
Will the resistance maintain or fold?
Earlier than shifting on, ICYMI, I’ve listed the potential economic catalysts that you need to watch out for this week. Verify them out earlier than you place your first trades right this moment!
And now for the headlines that rocked the markets within the final trading sessions:
Recent Market Headlines & Financial Information:
Treasury Sec Yellen: U.S. not shedding management of inflation
Asian shares advance as Evergrande woes ease
China to probe vitality producers and vitality worth index suppliers
ECB policymaker de Cos: Comparatively excessive inflation to final within the coming months
German Ifo enterprise local weather index down from 98.eight to 97.7 vs. 98.2 forecast
Upcoming Potential Catalysts on the Economic Calendar:
BOE MPC member Tenreyro’s speech at 1:00 pm GMT
In the event you’re not acquainted with the foreign exchange market’s predominant buying and selling classes, take a look at our Forex Market Hours instrument.
What to Watch: EUR/USD
The coast is obvious by way of top-tier financial stories right this moment, so EUR/USD would possibly merely keep inside its short-term vary.
Or will it?
Threat urge for food appears to be in play to date, as Asian markets are advancing forward of one other spherical of U.S. earnings stories.
Merchants may also be pricing in expectations for a weak U.S. Q3 superior GDP later within the week, in addition to a slight slowdown in worth pressures as indicated by the core PCE worth index.
A break greater may take EUR/USD up by the identical top because the chart formation, which spans roughly 50 pips.
The 100 SMA is above the 200 SMA to trace that the trail of least resistance is to the upside or that resistance is extra prone to break than to carry. Nevertheless, Stochastic is already hanging across the overbought zone to mirror exhaustion amongst patrons.
If resistance holds, EUR/USD may slide again to the underside of the vary at 1.1620. Germany simply reported one other dip in enterprise sentiment earlier on, as corporations are fearful about provide chain disruptions.
