With volatility still in decline, we’re checking out simple ranging plays for the next session. EUR/AUD has a solid looking setup that could see some action with Australian data ahead.
Before moving on, ICYMI, today’s Daily London Session Watchlist looked at an opportunity forming on GBP/JPY as reversal patterns start to emerge, so be sure to check that out to see if there is still a potential play!
|Equity Markets||Bond Yields||Commodities & Crypto|
|DAX: 12320.29 +0.08%
FTSE: 6191.43 +0.35%
S&P 500: 3116.81 +0.53%
DJIA: 25890.38 +0.30%
|US 10-yr 0.696% +0.043
Bund 10-YR -0.391% +0.069
UK 10-YR: 0.217% +0.045
JPN 10-YR: 0.056% +0.022
|Oil: 39.71 +1.12%
Gold: 1775.50 -1.38%
Ethereum: 229.14 +1.47%
Fresh Market Headlines & Economic Data:
Upcoming Potential Catalysts on the Economic Calendar for U.S. & Asia:
FOMC Meeting minutes at 6:00 pm GMT
U.S. Vehicle sales at 12:00 am GMT (July 2)
Australia Trade Balance at 1:30 am GMT (July 2)
What to Watch: EUR/AUD
On the one hour chart above, we can see the pair has been in a sideways pattern over the last two weeks, trading roughly between 1.6250 – 1.6400. After a strong move lower after resistance the top of the range, we’re back to the bottom and finding buying support at the moment.
As mentioned above, volatility has been sliding across the markets and with no major catalysts scheduled ahead, odds are in favor of the bulls at the moment that technical traders may taking this support retest as a buying opportunity.
And if the upcoming Australian trade balance data disappoints and/or broad risk sentiment shifts negative, then the probability a bounce from current levels.
For EUR/AUD bears, the momentum is currently in your favor at the moment, and with fresh positive coronavirus vaccine news, odds are pretty good positive risk sentiment could last for the session. If this is the case and Australian data surprises positive, then a break below 1.6250 could draw in momentum sellers and extend the down move lower.