There are no major reports on tap over the next couple of hours but a lower tier report from the euro zone could inspire big moves on EUR/USD’s potential retracement:
Fresh Market Headlines & Economic Data:
- BoE’s Haldane sees ‘stirring in the undergrowth’ on UK business investment
- Japan’s services producer price index up by 2.3% vs. 2.1% expected and previous
- Coronavirus further isolates Iran, strains South Korea, Italy
- Already 1-in-6 Australian businesses have been affected by the coronavirus (COVID-19)
- ANZ-Roy Morgan Consumer Confidence decreases to 108.3
Upcoming Potential Catalysts on the Forex Calendar:
- Germany’s final GDP reading at 7:00 am GMT
- U.K.’s CBI realized sales at 11:00 am GMT
- Canada’s quarterly corporate profits at 1:30 pm GMT
- U.S. house price index at 2:00 pm GMT
What to Watch: EUR/USD
There aren’t a lot of top-tier reports scheduled in today’s London session so it’s likely that traders will continue to focus on Coronavirus fears and overall risk aversion from yesterday’s trading.
I saw in the forex calendar that Germany will print its final GDP reading today which should turn some attention on the euro.As you can see, EUR/USD is seeing some retracement on the 1-hour time frame after finding support at the 1.0800 psychological handle.
The 1.0900 area is the level to watch for EUR/USD bears who think that the common currency’s downtrend against the dollar isn’t over just yet. Heck, MarketMilk is still “bearish” on the pair on the daily charts!
If you think that dollar bears are just getting started, however, then you’ll want to pay attention to how EUR/USD reacts to the 1-hour Fib retracement levels.
If the pair easily breaks above them Fibs and the 100 SMA crosses above the 200 SMA, then you can also prepare for a move up to the 1.1000 or 1.1100 previous areas of interest.
Not sure where to place your stop and profit targets? Make sure you know about EUR/USD’s volatility in the last couple of days!