The dollar seems to be pulling up early this week, as markets gear up for the U.S. CPI and FOMC decision.
Can the U.S. currency hold on to its gains against the euro?
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:
Japanese producer prices rose by 5.1% year-over-year in May, slower than earlier 5.9% gain and expected 5.6% increase
Japan’s preliminary machine tool orders fell by 22.2% year-over-year in May, steeper than earlier 14.4% slide
New Zealand May electronic card retail sales slumped 1.7% month-over-month in May versus estimated 0.3% uptick
NZIER downgraded New Zealand GDP forecast to a 0.6% expansion until March 2024, as estimates of household spending have been revised lower
Price Action News
It’s a slow start to the week in terms of economic catalysts, leaving traders room to price in expectations for this week’s top-tier events.
The dollar is pulling slightly higher against its forex rivals, most notably against the Japanese yen, as market players might be setting up their positions ahead of the FOMC and BOJ decisions.
In contrast, the U.S. currency is struggling to stay afloat against the franc, Aussie, and Kiwi.
BOE MPC member Mann’s speech at 2:00 pm GMT
New Zealand visitor arrivals at 10:45 pm GMT
Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️
EUR/USD 1-hour Forex Chart by TV
This pair is still trending lower on its hourly chart!
Price just dipped to lows around the 1.0735 region before pulling back up.
Now EUR/USD is testing the resistance at the 38.2% Fib, which happens to line up with a short-term area of interest, before possibly resuming the slide.
A higher pullback could reach the 50% level near the 1.0750 minor psychological level and today’s pivot point (1.0760) or the 61.8% Fib closer to a descending trend line and R2 (1.0770).
If any of these are enough to keep gains in check, EUR/USD could fall back to the swing low near S1 (1.0730) or even extend its slide to S2 (1.0720).
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