I’ve got EUR/GBP back on my radar for today since the pair is already testing its descending channel resistance.
Will sellers defend the ceiling?
Before moving on, ICYMI, yesterday’s watchlist checked out a countertrend idea on NZD/USD. Be sure to check out if it’s still a valid trade!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
Fed official Waller: 3 rate hikes are a good baseline position
Fed official Harker: Action on inflation is required
White House confirms three Fed nominees: Raskin, Jefferson & Cook
BOJ policymakers considering hiking rates soon?
Asian shares tumble on hawkish Fed policy stance
Chinese trade surplus widened from $71.7B to $94.5B
Upcoming Potential Catalysts on the Forex Economic Calendar:
ECB head Lagarde’s testimony at 1:15 pm GMT
U.S. headline and core retail sales at 1:30 pm GMT
U.S. industrial production at 2:15 pm GMT
U.S. preliminary UoM consumer sentiment index at 3:00 pm GMT
Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️
What to Watch: EUR/GBP
This pair is cruising lower inside a falling channel with its lower highs and lower lows. Don’t look now, but it’s already testing the channel resistance!
Can the selloff resume from here?
Moving averages seem to suggest so, as the 100 SMA is still below the 200 SMA to indicate that bearish pressure is in play.
At the same time, Stochastic is indicating overbought conditions or exhaustion among buyers, so price might follow suit once it heads south.
If resistance holds, EUR/GBP could slump back to the channel bottom around .8325 or the mid-channel area of interest at .8350.
However, the gap between the moving averages is narrowing to reflect weakening selling pressure and a looming bullish crossover.
If that happens, EUR/GBP might attempt to break above the channel top at .8350 and go for a reversal from the slide.
Planning on trading this one? Just make sure to keep tabs on ECB head Lagarde’s upcoming speech to gauge its impact on the euro.
