EUR/GBP just bounced from the .8700 major psychological handle!
Will this lead to EUR/GBP revisiting last week’s highs?
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:
Hong Kong and New Zealand’s markets out on bank holidays
Crude oil prices lower as second aid convoy reaches Gaza while Israel attacks targets in Syria and occupied West Bank
Foxconn, a major supplier of Apple’s iPhones, is facing a tax probe in China
Price Action News
Overlay of CHF vs. Major Currencies Chart by TradingView
There were not a lot of fresh catalysts to start the trading week but the Swiss franc did see extra volatility against its major counterparts.
The safe haven dipped lower across the board, possibly on a bit of start-of-week risk-taking or some pullback from last week’s gains. Hong Kong and New Zealand’s markets being out on holiday may have also contributed to CHF’s one-directional moves during the Asian session.
London session was a bit better for the safe haven as it turned higher over fears of geopolitical conflict contagion in Europe.
CHF is trading positive against NZD and is printing the weakest against EUR and USD.
Upcoming Potential Catalysts on the Economic Calendar:
Eurozone consumer confidence at 2:00 pm GMT
Australia’s October flash PMIs at 10:00 pm GMT
Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️
EUR/GBP 15-min Forex Chart by TradingView
As mentioned above, there were no fresh catalysts to move the markets around at the start of the week.
Despite that, EUR/GBP still bounced from the .8700 psychological handle which is also not too far from a trend line and 50% Fibonacci retracement support.
One possible explanation for the upswing is a bit of risk-taking at the start of the week.
GBP’s weakness may have also come from the anticipation of a not-so-hawkish U.K. labor market data due tomorrow.
In any case, EUR/GBP continues to pump up bullish candlesticks after the bounce from .8700. Unless we see a sentiment-changing catalyst, EUR/GBP may head for its previous highs near .8740.
Before you buy EUR/GBP like there’s no tomorrow, though, you should note that EUR/GBP has already moved up by at least half of its average daily volatility. Don’t discount the possibility of a bearish pullback if you’re anticipating further bullish momentum.
Good luck and good trading this one!
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