We’ve got a couple of mid-tier U.S. reports on deck today, and these might be enough to spur dollar action.
Think EUR/USD can carry on with this trend?
Before moving on, ICYMI, yesterday’s watchlist checked out NZD/CHF’s steady uptrend. Be sure to check out if it’s still a valid play!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
S&P 500 index chalks up third consecutive gain on Russia-Ukraine peace talks
Japanese unemployment rate dipped from 2.8% to 2.7% in March
BOJ Governor Kuroda: No changes in policy stance, no plans to issue CBDC
Shanghai rolling out economic support policies to support firms in lockdown
Australian retail sales jumped another 1.8% vs. projected 0.9% uptick
German GfK consumer climate index sank from -8.5 to -15.5 vs. -14.6 consensus
German import prices rose 1.3% vs. projected 1.5% gain
U.K. mortgage approvals fell from 74K to 71K vs. 75K forecast
SNB suggests possibility of repo rate transactions being indexed to policy rate
U.S. 2-year and 10-year Treasury yields continue to rise
Upcoming Potential Catalysts on the Forex Economic Calendar:
U.S. JOLTS job openings at 2:00 pm GMT
U.S. CB consumer confidence index at 2:00 pm GMT
SNB Governing Board member Zurbrugg’s speech at 4:30 pm GMT
New Zealand building consents at 9:30 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/USD
This pair has been cruising inside a descending channel on its 1-hour chart, and it looks like another pullback to the resistance is underway.
Will sellers continue to defend the ceiling?
The Fib retracement tool shows that this is right smack in line with the 61.8% level and the 1.1000 major psychological mark, which means that it’s a prime entry area.
Stochastic is edging higher, so there might still be space for a larger correction, but the oscillator is closing in on the overbought zone to signal rally exhaustion.
Turning lower would confirm that euro bears are returning and ready to take EUR/USD back down to the swing low around 1.0950 or the channel support.
Catalysts to watch out for include the U.S. JOLTS job openings report, which might have some clues for the NFP, and the U.S. CB consumer confidence index. Strong readings could keep expectations of back-to-back Fed hikes in play, which might be bullish for the Greenback.
