Is a short-term reversal underway for EUR/USD?
This might be an opportunity to catch a quick pullback before a potential uptrend takes place.
Before moving on, ICYMI, today’s Daily Asia-London Session Watchlist looked at EUR/AUD’s triangle pattern as markets price in expectations for the RBA decision . Be sure to check that out to see if there is still a potential play!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
- U.S. Treasury Secretary Yellen seeks global minimum corporate tax rate
- Japanese average cash earnings down 0.2% vs. projected 0.5% dip
- Japanese household spending sank 6.6% vs. expected 5.0% drop
- Australia’s ANZ job advertisements up 7.4% in March
- Chinese Caixin manufacturing PMI up from 51.5 to 54.3 vs. 52.2 forecast
- New Zealand and Australia to start travel bubble on April 19
- RBA kept interest rates on hold at 0.10% as expected
- RBA head Lowe: “The economic recovery in Australia is well under way and is stronger than had been expected”
Upcoming Potential Catalysts on the Economic Calendar:
- Eurozone Sentix investor confidence index at 9:30 am GMT
- U.S. JOLTS job openings at 3:00 pm GMT
- New Zealand GDT auction coming up
What to Watch: EUR/USD
In case you missed it, EUR/USD has just busted through the neckline of its inverted head and shoulders pattern on the 1-hour chart.The pair might be in for a quick retest to gather more bullish energy, and the Fib tool shows that buyers might be waiting around the 1.1770-1.1790 area.
Technical indicators are suggesting that the correction is still going on, as the 100 SMA is below the 200 SMA while Stochastic is heading south. However, the gap between the moving averages is narrowing to signal a potential bullish crossover while the oscillator is approaching oversold levels.
There are no major events coming up from Uncle Sam in the New York trading session, but traders might start pricing in expectations for the release of the FOMC minutes later in the week.
If the eurozone Sentix investor confidence index also manages to meet or beat expectations, it might bring some upside for the shared currency throughout the day as well.