EUR/USD is testing a short-term range support!
Will ECB rate hike speculations inspire a bounce 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:
Australia’s retail sales up by 1.3% in July, the fastest in four months
Oil prices rise on the possibility of OPEC+ output cuts and Libya conflictAsian and early European trading play catch up to Friday’s selloff, “Powell pain”
Dollar hits 20-year high as markets hunker down for higher rates for longer
The U.S. dollar strength hurting BTC and the overall crypto market remains under pressure.
Singapore says retail investors ‘irrationally oblivious to crypto risks, plans tougher rules
Traders ramp up bets on 75 basis-point ECB Sept hike
Upcoming Potential Catalysts on the Forex Economic Calendar:
UK markets out on bank holiday
FOMC member Brainard to give a speech at 6:15 pm GMT
Japan’s unemployment rate at 11:30 pm GMT
Australia’s building approvals at 1:30 am GMT (Aug 30)
Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️
What to Watch: EUR/USD
EUR/USD 1-hour Forex Chart
The .9920 level looks ready to support the pair for the third time since last week!
Meanwhile, Stochastic is sending “oversold” signals while the 1-hour chart’s 100 SMA flattens and tightens its gap against the 200 SMA.
Does this mean that EUR/USD is done with its short-term downtrend?Let’s see if the USD-friendly “Powell pain” theme continues to play out.
Remember that the Fed head honcho hinted that the FOMC gang would choose to control escalating prices even if it brings “some pain” (read: lower growth) to the economy.
Thing is, last weekend’s hawkish remarks from major central bankers got traders pricing in a 75-bps European Central Bank (ECB) rate hike in September.
If USD buyers run out of steam in the next trading sessions, or if ECB rate hike speculations gain momentum, then EUR/USD could bounce from its short-term range and revisit parity or 1.0075.
If traders continue to buy the dollar, though, then EUR/USD could be in for more pain. Yipes!
