Are we looking at a hot retracement opportunity?
Fresh Market Headlines & Economic Data:
- Storms and coronavirus kept UK shoppers at home in February
- NAB: both business confidence and conditions declined in February
- RBNZ’s Orr: No need to use alternative monetary policy at this time
- Japan’s Abe pressures BOJ to ease ahead of next week’s rate review
- Japan to unveil coronavirus package, not yet eyeing extra budget
- Australia’s Morrison warns coronavirus hit could be worse than GFC amid recession predictions
- China inflation slows in February, factory deflation returns
- Asia shares bounce as stimulus hopes stem rout, for now
Upcoming Potential Catalysts on the Economic Calendar:
- France’s industrial production at 6:30 am GMT
- Italy’s industrial production at 7:45 am GMT
- Euro Zone’s final employment change at 10:00 am GMT
- Euro Zone’s revised GDP at 10:00 am GMT
What to Watch: EUR/USD
Talks of coordinated stimulus from major governments around the world encouraged some profit-taking of shorts during the Asian session.
In EUR/USD’s case, profit-taking took the form of dollar-buying amidst the pair’s multi-week uptrend on the 1-hour time frame.Can dollar bulls maintain their momentum? Or will euro bulls step back in to extend the uptrend? EUR/USD is currently trading at a 38.2% Fib retracement that also lines up with a short-term resistance.
Sitting just a few pips below the level, however, is the 1.2575 area that lines up with the 61.8% Fib, 100 SMA, and rising trend line that has been unbroken since late February.
Any of the Fib lines look good as potential entries if EUR/USD ends up making new March highs in the next couple of hours.