Traders might use today’s light schedule to place bets ahead of the big events later in the week.
Or will New Zealand’s retail sales release spur a breakdown on EUR/NZD?
Before moving on, ICYMI, I’ve listed the potential economic catalysts that you need to watch out for this week. Check them out before you place your first trades today!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
Japan also rumored to be prepping to release oil reserves
Chinese land sales slump for 4th month on property sector woes
Japan announced $490 billion stimulus spending package to address pandemic
New Zealand to shift to less restrictive COVID-19 alert system by Dec. 3
German lawmakers considering compulsory COVID-19 vaccination
European equities open higher for the day
Upcoming Potential Catalysts on the Economic Calendar:
U.S. existing home sales at 3:00 pm GMT
New Zealand quarterly retail sales at 9:45 pm GMT
If you’re not familiar with the forex market’s main trading sessions, check out our Forex Market Hours tool.
What to Watch: EUR/NZD
This pair is hanging out at the bottom of its short-term range, still deciding whether to make a bounce or a break.
Will buyers defend the range support?Technical indicators are hinting at a breakdown, as the 100 SMA is below the 200 SMA to show that the path of least resistance is to the downside.
At the same time, Stochastic is turning lower from the overbought zone to signal that sellers are returning while buyers take a break.
A move below support at the 1.6100 major psychological mark could spur a slide that’s the same height as the rectangle pattern or roughly 225 pips. A bounce, on the other hand, could take EUR/NZD back up to the resistance at 1.6325.
This could all boil down to the upcoming quarterly retail sales release from New Zealand. Number crunchers are predicting a sharp 10.2% decline in the headline figure and a 7.6% fall for the core reading.
But with the consensus setting the bar so low, any upside surprise might be enough to wake Kiwi bulls up. Don’t forget that the RBNZ decision is coming up later in the week, too!