Every day U.S. Session Watchlist: EUR/CAD

With crude oil having fun with extra volatility lately, will the correlated Loonie even be in for giant strikes?

Right here’s a pullback setup I’m watching.

Earlier than transferring on, ICYMI, at the moment’s Asia-London session watchlist checked out AUD/NZD’s support test ahead of New Zealand’s inflation expectations report. Be sure you take a look at if it’s nonetheless a legitimate play!

And now for the headlines that rocked the markets within the final trading sessions:

Contemporary Market Headlines & Financial Information:

Chinese language reserve bureau reportedly engaged on oil reserves launch

New Zealand inflation expectations up from 2.27% to 2.96% in Q3

Evergrande offered stake in streaming platform HengTen

IEA and OPEC warned of potential world glut on oil reserves launch

Upcoming Potential Catalysts on the Economic Calendar:

U.S. Philly Fed manufacturing index at 1:30 pm GMT
U.S. preliminary jobless claims at 1:30 pm GMT
FOMC member Williams’ speech at 2:30 pm GMT
FOMC member Evans’ speech at 7:00 pm GMT

Should you’re not conversant in the foreign exchange market’s primary buying and selling classes, take a look at our Forex Market Hours device.

What to Watch: EUR/CAD

EUR/CAD 1-hour Forex Chart
EUR/CAD 1-hour Foreign exchange Chart

The oil-related Loonie offered off not too long ago on downbeat Canadian inflation stories and the prospect of oil reserves being launched to the worldwide market.

However will resistance ranges nonetheless draw EUR/CAD sellers out?

The pair is already testing the 50% Fibonacci retracement level, which is correct smack consistent with the 100 SMA dynamic inflection level and a former assist zone.

A bigger correction might nonetheless attain the 61.8% Fib that traces up with the 200 SMA dynamic inflection point and the 1.4350 minor psychological mark.

If these Fibs are sufficient to maintain features in examine, EUR/CAD might resume the slide to the swing low at 1.4175 or decrease.

In any case, the 100 SMA is beneath the 200 SMA to substantiate that the trail of least resistance is to the draw back. Additionally, Stochastic already reached the overbought zone to sign exhaustion amongst consumers and a probable return in promoting strain.

There aren’t any main stories out of Canada at the moment, so Loonie merchants would doubtless hold their eyes and ears peeled for crude oil updates.

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