It looks like another quiet session ahead, but we could see movement in EUR/AUD with economic updates from both Australia and the Euro area on Tuesday.
Before moving on, ICYMI, today’s Daily U.S. Session Watchlist looked at a potential technical setup on GBP/NZD, so be sure to check that out to see if there is still a potential play!
|Equity Markets||Bond Yields||Commodities & Crypto|
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Fresh Market Headlines & Economic Data:
Upcoming Potential Catalysts on the Economic Calendar
U.K. Retail Sales Monitor at 11:01 pm GMT
Japan M2 Money Supply
Australia New Home Sales at 12:00 am GMT (Apr. 13)
Australia Business Confidence at 1:30 am GMT (Apr. 13)
China Trade Balance at 3:00 am GMT (Apr. 13)
Germany Wholesale Prices at 6:00 am GMT (Apr. 13)
U.K. GDP, Trade Balance, Industrial & Manufacturing Production at 6:00 am GMT (Apr. 13)
Italy Industrial Production at 8:00 am GMT (Apr. 13)
ZEW Economic Sentiment Index at 9:00 am GMT (Apr. 13)
What to Watch: EUR/AUD
On the one hour chart above of EUR/AUD, we can see the bulls have been in solid control over the last week, but lately finding it tough to move higher at the 1.5650 minor psychological level. Price action as been consolidating between the 1.5550 – 1.5650 range, setting up a potential breakout play if we see a strong enough catalyst.
Unfortunately, our lineup of potential catalysts for the Tuesday session looks pretty weak as most events are low to mid-tier ones. But you’ve still gotta pay attention to the numbers, especially if we get a big surprise from the Chinese trade data, Australian business sentiment data, or the ZEW data from Europe.
With the trend in favor of the euro and ZEW data expected to improve once again, we’re looking for a long opportunity, and if Australian business sentiment data disappoints, we’ll look for bullish reversal patterns at the rising ‘lows’ pattern for a potential long entry setup.
If volatility picks up and broad risk sentiment leans in favor of risk assets, that could benefit the Aussie if there are no big surprises from the economic data. That scenario makes a break below the rising ‘lows’ in EUR/AUD a technical setup to watch as it could draw in short-term sellers looking to start a momentum move on the pair.