U.S. and Canadian markets are closed for the Labor Day holiday today, but why is the Loonie already on the move?
Check out this EUR/CAD weekend gap!
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:
New Zealand ANZ commodity prices fell 3.3% after previous 2.2% drop
Australia’s MI inflation gauge down 0.5% after earlier 1.2% gainAustralian ANZ job advertisements up 2.0% in August
Australia’s company operating profits jumped 7.6% in Q2 vs. 4.6% forecast
Australian retail sales rose another 1.3% as expected in July
Chinese Caixin services PMI fell from 55.5 to 55.0 vs. 54.0 consensus
Russia says Nord Stream pipeline to be shut off indefinitely
Upcoming Potential Catalysts on the Forex Economic Calendar:
U.S. and Canadian markets closed for Labor Day holiday
OPEC-JMMC meetings to kick off today
BOE MPC member Mann’s speech at 3:30 pm GMT
U.K. BRC retail sales monitor at 11:01 pm GMT
Japanese average cash earnings and household spending at 11:30 pm GMT
RBA monetary policy meeting at 4:30 am GMT (Sept. 6)
Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️
What to Watch: EUR/CAD
EUR/CAD 1-hour Forex Chart
What’s up with that gap lower on this pair?!
Loonie bulls seem eager to charge, as CAD has started the week off on a strong note against its rivals.
This was enough to take EUR/CAD below its head and shoulders neckline, confirming that a downtrend is in order.If that’s the case, this forex pair could be in for a selloff that’s at least the same height as the formation, which spans roughly 200 pips.
Just be careful since technical indicators have yet to catch up to the change in trend. Stochastic is in the oversold region to reflect exhaustion among sellers while the 100 SMA is still above the 200 SMA.
Then again, EUR/CAD is inching below the 200 SMA dynamic inflection point, which means that this could hold as resistance moving forward.
Even though Canadian markets are in holiday mode today, the oil-related Loonie might be picking up on some bullish vibes ahead of the OPEC+ meetings.
Recall that Saudi Arabia suggested lowering their output targets in anticipation of an Iran nuclear deal earlier on, so there could be some upside for the commodity if the cartel agrees to these adjustments.
In any case, better keep tabs on the headlines for any changes in market sentiment, too!
