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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!

Intermarket Snapshot

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%
Bitcoin:9241.00 +1.04%
Ethereum: 229.14 +1.47%

Fresh Market Headlines & Economic Data:

June private payrolls rose 2.37 million and there was a big positive revision for May, ADP says

U.S. Mortgage demand falls for the second straight week, signaling a potential slowdown in the housing recovery

U.S. employers announced an additional 170,219 job cuts in June

U.S. Manufacturing PMI: Record rise in manufacturing PMI amid looser COVID-19 restrictions – IHS Markit

U.S. Construction spending fell 2.1% in May

German employment May 2020: -1.1% on the same month a year earlier

German Retail turnover in May 2020: 3.8% in real terms on May 2019

Eurozone manufacturing sector moves towards stabilisation in June

UK manufacturing stabilises in June following severe COVID-19 downturn

Swiss PMI June 2020: Significant recovery of the service PMI

Oil rises on signs of economic recovery, but new infections loom

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

EUR/AUD 1-Hour Forex Chart
EUR/AUD 1-Hour Forex Chart

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.