We’ve got Aussie and Euro area data up ahead to potential solidify whether or not the resistance break on EUR/AUD is a legit breakout or fake out.
Before moving on, ICYMI, today’s Daily U.S. Session Watchlist looked at the downtrend in AUD/JPY, so be sure to check that out to see if there is still a potential play!
|Equity Markets||Bond Yields||Commodities & Crypto|
DAX: 15790.51 +0.65%
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S&P 500: 4384.63 +0.35%
NASDAQ: 14733.24 +0.21%
US 10-YR: 1.366% +0.01
Bund 10-YR: -0.302% -0.001
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Gold: 1,806.20 -0.24%
Bitcoin: $32,904.75 -2.96%
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Fresh Market Headlines & Economic Data:
Upcoming Potential Catalysts on the Economic Calendar
Australia Business Confidence at 1:30 am GMT (July 13)
Australia New Home Sales at 3:00 am GMT (July 13)
China Balance of Trade at 3:00 am GMT (July 13)
Germany Inflation Rate at 6:00 am GMT (July 13)
BOE Financial Stability Report, Meeting Minutes at 6:00 am GMT (July 13)
France Inflation Rate at 6:45 am GMT (July 13)
What to Watch: EUR/AUD
On the one-hour chart above of EUR/AUD, we can see the pair recently broke above the 1.5850 minor psychological handle, which held off the bulls three times back in June. So, this is a pretty important level to watch for technical traders, and now that the pair has retraced back to that level, it’s definitely one to watch for a potential short-term play.
Ahead, we’ve got potential catalysts for both currencies on the forex calendar, most notably Australian business confidence data and inflation updates from Europe. Both sets of data points are likely to potentially cause a little stir of volatility, especially if they far off expectations/previous reads.
Given that the pair has been in a slow grind uptrend since March, and that the overall market environment leans more risk averse lately as covid-19 cases spike, we’ll be looking for that strong area of interest around 1.5850 to hold as a potential support area.
And if the upcoming fundies line up with the bulls (i.e., weak Aussie business confidence and higher Euro area inflation), then it makes sense to look for a long position setup for both short-term and longer-term opportunities. Bullish candles at current levels may draw in buyers quickly in this scenario, and for the more conservative, a break above the falling ‘highs’ trendline might be the price signal to wait for a confirmation that the uptrend is highly likely to resume.