The coast is clear in terms of top-tier economic releases in the next session!
Here’s why I’m keeping an eye on this neat technical setup instead.
Before moving on, ICYMI, yesterday’s watchlist looked at a break-and-retest opportunity on EUR/USD. 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:
New Zealand credit card spending jumped 3.4% vs. previous 1.1% gainJapanese BOJ core CPI up from 1.0% to 1.1% as expected
Swiss trade surplus narrowed from 5.88B CHF to 2.99B CHF vs. projected 6.23B CHF
U.K. public sector net borrowing increased from 9.9B GBP to 17.3B GBP
Asian shares edge higher but sentiment still wobbly on China growth fears
Japanese Finance Minister Suzuki continues to jawbone yen but denies joint intervention with US
PBOC to increase prudent monetary policy support
Upcoming Potential Catalysts on the Forex Economic Calendar:
U.S. core durable goods orders at 12:30 pm GMT
U.S. CB consumer confidence index at 2:00 pm GMT
U.S. new home sales at 2:00 pm GMT
U.S. Richmond manufacturing index at 2:00 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/NZD
It’s another light day in terms of economic data, so I’m gonna be watching this neat trend setup instead.
Will buyers return for EUR/NZD soon?The pair has been cruising above a rising trend line on its hourly chart, forming higher since the start of this month.
Price looks ready for another test of support, which happens to be right around the 61.8% Fibonacci retracement level and the 1.6100 major psychological support.
To top it off, this lines up with the 200 SMA dynamic inflection point which adds to its strength as a floor.
The 100 SMA is above the 200 SMA to hint that the uptrend is more likely to resume than to reverse. Also, Stochastic is pulling higher after its dip to the oversold region, indicating that euro bulls are ready to return.
In that case, EUR/NZD could be in for another rally to the swing high around the 1.6350 minor psychological mark and beyond.
Better keep your eyes peeled for reversal candlesticks around the area of interest if you’re taking a long position on this one!