This pair is closing in on its range resistance as the eurozone printed weak PMIs!
Will we see a move back to support soon?
Before moving on, ICYMI, yesterday’s watchlist looked at the range resistance on GBP/AUD after seeing strong U.K. CPI. Be sure to check out if it’s still a valid play!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
Fed head Powell admits that a recession is a possibility
Eurozone consumer confidence index sank from -21 to -24
Australian flash manufacturing PMI rose from 55.7 to 55.8
Australian flash services PMI down from 53.2 to 52.6
Japanese flash manufacturing PMI down from 53.3 to 52.7
U.K. public sector net borrowing down from 21.1B GBP to 13.2B GBP
French flash services PMI fell from 58.3 to 54.4 vs. 57.6 forecast
French flash manufacturing PMI dropped from 54.6 to 51.0 vs. 53.9 forecast
German flash manufacturing PMI slipped from 54.8 to 52.0 vs. 54.0 consensus
German flash services PMI fell from 55.0 to 52.4 vs. 54.6 consensus
U.K. flash manufacturing and services PMI at 8:30 pm GMT
U.S. flash manufacturing and services PMI at 1:45 pm GMT
Fed head Powell’s testimony at 2:00 pm GMT
U.K. GfK consumer confidence index at 11:00 pm GMT
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What to Watch: EUR/CAD
EURCAD 4-hour Forex Chart
This pair is within striking distance of its range resistance!
EUR/CAD has been pacing back and forth between support at the 1.3400 major psychological handle and resistance at the 1.3750 minor psychological mark.
Will the ceiling hold again this time?
Sentiment in the euro region seems pretty bleak, as the first round of flash PMIs have sorely missed expectations.
This could mean that the shared currency is about to return some of its recent gains, as traders start doubting whether or not the ECB can actually afford to hike in July.
It’s worth noting that the Canadian economy printed a bunch of upside surprises in its inflation report earlier this week, upping the odds that the BOC would hike again in their next meeting.
With that, EUR/CAD might head south again soon, possibly aiming for the range support or the area of interest around the middle.
Moving averages are in favor of a slide, as the 100 SMA is below the 200 SMA, while Stochastic is approaching the overbought area to reflect exhaustion among buyers soon.
Just be sure to keep an eye out for swings in market sentiment, especially since Fed head Powell has another testimony coming up!
