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Asian session trading may have been a snoozer but that doesn’t mean we won’t see volatility during the London session!

Today I’m looking at EUR/USD’s 1-hour time frame.

Before we talk about the setup, though, you should check out the market headlines that you might have missed:

Currency Snapshot

Major Forex Pairs Price Performance from MarketMilk
Major Forex Pairs Price Performance from MarketMilk

Fresh Market Headlines & Economic Data:

Upcoming Potential Catalysts on the Economic Calendar:

  • Germany’s import prices at 6:00 am GMT
  • ECB Governor Lagarde to give a speech at 7:00 am GMT
  • BOE’s quarterly bulletin at 11:00 am GMT
  • U.S. PCE core price index at 12:30 pm GMT
  • U.S. personal spending at 12:30 pm GMT

What to Watch: EUR/USD

EUR/USD 1-hour Forex Chart
EUR/USD 1-hour Forex Chart

China’s markets being out on holiday and a lack of fresh market catalyst kept EUR/USD in a tight range earlier today.

London session’s economic calendar doesn’t look much better with only lower-tier reports on tap.

The biggest potential mover is Lagarde’s speech at 7:00 am GMT. Based on her remarks last week, the ECB head honcho wants EU members to reach a stimulus agreement stat.

If she talks about progress on EU stimulus talks, or if she hints at further monetary policy easing by ECB, then we could see EUR/USD find support at 1.1225 and head towards the descending channel resistance on the 1-hour time frame.

If Lagarde’s event turns out to be a snoozer, however, then EUR/USD will take cues from overall risk sentiment.

This means coronavirus or global trade-related headlines could take center stage.

A break below the 1.1200 support could drag EUR/USD to new June lows, while risk appetite and focus on the 100 SMA crossing above the 200 SMA might push the euro to the 1.1280 levels.