Partner Center Find a Broker

A handful of medium-tier reports are due from the euro zone in the next session, so I’m looking out for a turnaround on this euro pair.

Currency Snapshot:

Major Forex Pairs Price Performance
Major Forex Pairs Price Performance

Fresh Market Headlines & Economic Data:

Upcoming Potential Catalysts on the Forex Calendar:

  • German import prices at 7:00 am GMT
  • U.K. Nationwide HPI at 7:00 am GMT
  • German preliminary CPI at 7:00 am GMT
  • Swiss retail sales at 7:30 am GMT
  • French consumer spending, preliminary CPI and GDP at 7:45 am GMT
  • Swiss KOF economic barometer at 8:00 am GMT
  • German unemployment change at 8:55 am GMT

What to Watch: EUR/USD

EUR/USD 4-hour Forex Chart
EUR/USD 4-hour Forex Chart

Despite strong risk-off flows in the Asian session on account of the coronavirus outbreak, the euro still managed to surge against the Greenback.

These rallies could come to a halt if risk aversion persists in the London session, though, as investors continue to pay closer attention to cases and fatalities outside of mainland China.

On top of that, potentially disappointing economic figures from the region might also spur profit-taking for EUR/USD. The pair is currently testing the 50% Fibonacci retracement level that lines up with a former support level at the 1.1000 major psychological mark.

EUR/USD Oscillators from MarketMilk
EUR/USD Oscillators from MarketMilk

Buyers seem to be exhausted as stochastic and Williams %R are showing overbought conditions while RSI and Bollinger Bands are approaching these levels as well.

If euro zone economic data disappoints, the pair could retreat by around the EUR/USD volatility of 49.2 pips. On the other hand, strong figures could lead to a move up to the next resistance at the 61.8% Fib.