EUR/USD looks ready to bounce from a short-term support zone!
Will the range hold today?
Before moving on, ICYMI, I’ve listed the potential economic catalysts that you need to watch out for this week. Check them out before you place your first trades today!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
Japan’s real wages down 0.2% in March, declining for the first time in three months
Bulgaria says will veto EU oil sanctions on Russia if it does not get derogation
China’s PBOC to boost credit for transport, logistics, storage sectors
Japan to ban ‘in principle’ Russian oil imports following G7 pledge
Asian stocks retreat as China’s lockdowns stir recession worries
Dollar up on rising U.S. yields, China’s lockdowns, and rate hike fears
Upcoming Potential Catalysts on the Forex Economic Calendar:
Canada’s building permits at 12:30 pm GMT
U.K. BRC retail sales monitor at 11:01 pm GMT
Japan’s household spending at 11:30 pm GMT
AU NAB business confidence at 1:30 am GMT (May 10)
Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️
What to Watch: EUR/USD
I’m not seeing a lot of top-tier economic reports scheduled today but that doesn’t mean that we won’t see decent price action!
In case you missed it, the dollar made a few pips against its major counterparts while traders worried about high interest rates, aggressively hawkish central banks, and lockdowns in China possibly choking global growth.Will a new trading week improve EUR’s prospects against the safe-haven dollar?
EUR/USD has been trading inside a 100-pip range since late April and it looks like it’s about to retest the consolidation’s support at 1.0500.
A risk-friendly trading environment could lead to a bounce from the range support. The 1.0550 mid-range level near the SMAs is a good initial target but you can also aim for the 1.0600 range resistance if you see enough momentum.
Don’t discount further USD buying though!
If the EU goes ahead with its Russian oil ban or if this week’s lower-tier reports lead to more dollar demand, then EUR/USD could break below its 1.0500 support and head for areas of interest closer to 1.0350.