We’re waiting to see if the upcoming European Central Bank monetary policy statement will give the euro enough kick to break EUR/NZD out of its range.
Before moving on, ICYMI, today’s Daily U.S. Session Watchlist looked at an opportunity forming on USD/CAD ahead of U.S. inflation numbers, so be sure to check that out to see if there is still a potential play!
Intermarket Update:
| Equity Markets | Bond Yields | Commodities & Crypto |
|
DAX: 14540.25 +0.71% FTSE: 6725.60 -0.07% S&P 500: 3898.81 +0.60% NASDAQ: 13068.83 -0.04% |
US 10-YR: 1.52% -0.024 Bund 10-YR: -0.318% -0.006 UK 10-YR: 0.707% -0.009 JPN 10-YR: 0.12% -0.015 |
Oil: 64.72 +1.11% Gold: 1,723.30 +0.37% Bitcoin: 56467.75 +1.36% Ethereum: 1,801.20 -3.86% |
Fresh Market Headlines & Economic Data:
Dow rallies 460 points to close at a record as bond yields fall, House passes new stimulus
Biden’s $1.9 trillion COVID-19 bill wins final approval in House
10-year yield falls after Treasury auction demand is adequate enough to ease investors’ fears
North America sees drop in COVID-19 cases, Brazil surge worrying, says PAHO
French daily COVID cases rise above 30,000 for first time in two weeks
Bank of England to mull its message on rates after bond market rout
Upcoming Potential Catalysts on the Economic Calendar
New Zealand Food Prices at 9:45 pm GMT
Japan PPI at 11:50 pm GMT
Australia Consumer Inflation Expectations at 12:00 am (Mar. 11)
U.K. RICS House Price Balance at 12:00 am (Mar. 11)
Swiss SECO Economic Forecasts at 8:00 am (Mar. 11)
What to Watch: EUR/NZD
On the one hour chart above of EUR/NZD, we can see the pair has been in a sideways chop throughout the month of March. But over the last few sessions, we’ve seen a falling ‘highs’ pattern form, suggesting the bears are slowly taking control of this pair. Will this lead to a breakdown of support soon?
Well, we’ve got a top tier potential catalyst on the way in the form of the latest monetary policy statement from the European Central Bank. Expectations are for the ECB to hold on policy, but with bond yields rapidly rising over the past few weeks, the ECB could potentially take action to limit the bond yield rally.
Whatever the case may be with tomorrow’s event, odds are pretty good the euro will get moving, making the tightening in price around the 1.6550 minor psychological level one to watch for a potential consolidation-breakout entry setup.
And with a daily ATR of around 120 pips, a spike lower could take the pair back into its longer-term downtrend with a target around the 1.6450 range. But if we get a bullish catalyst for the euro, a move higher above the falling trendline could take the pair as far as 1.6700 before the bulls run out of steam.
