Daily Forex News and Watchlist: EUR/USD

EUR/USD is bouncing from a potential support zone!

Will the pair maintain its uptrend today?

Before moving on, ICYMI, yesterday’s watchlist checked out NZD/USD’s short-term downtrend ahead of the U.S. initial jobless claims numbers. Be sure to check out if it’s still a good play!

And now for the headlines that rocked the markets in the last trading sessions:

Fresh Market Headlines & Economic Data:

U.S. Weekly Initial Jobless Claims: 220K (225K forecast; 219K previous); continuing claims at 1.861M (1.94M forecast; 1.925M previous)

U.S. Challenger Job Cuts for November: 24% m/m 45.5K (40K forecast; 36.8K previous)

New Zealand’s manufacturing sales for Q3: -2.8% q/q (-0.8% q/q previous)

Japan’s real wages declined for a 19th consecutive month in October, with inflation-adjusted wages falling by 2.3% y/y after a 2.9% y/y decline in September

Japan’s household spending for October: -2.5% m/m (-2.9% m/m forecast, -2.8% m/m previous)

Japan’s final GDP revised lower from -0.5% q/q to -0.7% q/q in Q3 (-0.5% q/q expected)

Price Action News

Overlay of JPY vs. Major Currencies

Overlay of JPY vs. Major Currencies Chart by TradingView

The Japanese yen started the day on a strong note as Asian session traders caught up to speculations that the Bank of Japan (BOJ) possibly ending its negative interest rate policies.

The safe haven soon gave up most of its gains, though, thanks to BOJ Governor Ueda still discussing the possibility of extending the central bank’s accommodative monetary policies.

JPY is currently trading the strongest against NZD and GBP and is slightly weaker against CAD and AUD.

Upcoming Potential Catalysts on the Economic Calendar:

U.S. NFP reports at 1:30 pm GMT
U.S. preliminary UoM consumer sentiment and inflation expectations at 3:00 pm GMT
China’s CPI reports at 1:30 am GMT (Dec 9)

Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️

EUR/USD 15-min Forex

EUR/USD 15-min Forex Chart by TradingView

EUR/USD has been showing us higher highs and higher lows since yesterday when the pair found buyers around the S1 (1.0760) Pivot Point level.

The pair has pulled back down to the 1.0780 area, though, which lines up with the bottom of an ascending channel pattern in the 15-minute time frame.

Can the pair maintain its uptrend today?

EUR/USD’s next moves will likely depend on today’s U.S. NFP report. The markets mostly expect slightly weaker U.S. jobs numbers in November, which could fuel Fed interest rate cut speculations.

If today’s numbers point to easier monetary policies from the Fed and other major central banks, then we may see a risk-friendly trading environment that may favor EUR against USD.

We could see EUR/USD trade higher. The pair could revisit the 1.0800 psychological level or the 1.0815 previous highs.

If the U.S. jobs releases inspire global growth slowdown or recession concerns, however, then EUR/USD may attract more sellers.

EUR/USD could break below its trend line support and possibly head for the 1.0760 weekly lows.

What about you? Which direction do you think EUR/USD head to next?


Source link

Comments are closed.