I’ve got EUR/USD on my watchlist again for today as the pair is presenting another neat retracement opportunity. Check it out!
Currency Snapshot:
Fresh Market Headlines & Economic Data:
- Japanese gov’t promises ‘bold’ efforts to beat coronavirus fallout
- Australian gov’t bans mass gatherings to prevent virus spread
- Singapore extends more travel restrictions to other European countries
- Business NZ manufacturing index up from 49.8 to 53.2
- BOJ announces unscheduled bond-buying operation
- Several exchanges in Asia halt trading on circuit breakers
Upcoming Potential Catalysts on the Economic Calendar:
- German final CPI at 7:00 am GMT
- French final CPI at 7:45 am GMT
What to Watch: EUR/USD
This pair might be in for another break-and-retest opportunity like yesterday’s as price is retreating to the Fib levels on its latest slide.
EUR/USD is already forming a short-term descending trend line on the 1-hour time frame, and the 61.8% level lines up with an area of interest right at this resistance area.
Price seems to be hitting a ceiling at the 50% Fib already, but stochastic has some room to climb before indicating overbought conditions so a higher pullback could follow.Travel restrictions could hit the euro zone economy hard, especially since other economies like Singapore are expanding their ban to other European countries outside of Italy.
If you think the selloff could carry on soon, a short position at 1.1225 with a 100-pip stop that’s slightly wider than the average daily EUR/USD volatility could work out.
