The Eurozone is printing a bunch of closely-watched economic data!
Will today’s releases lead to a short-term upside breakout for EUR/CHF?
Before moving on, ICYMI, yesterday’s watchlist checked out AUD/CAD’s potential pullback levels ahead of RBA’s meeting minutes. 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:
New Zealand’s tourism up by another 16.6% m/m in September
Japan’s economy unexpectedly contracts by 0.3% q/q (1.2% y/y) in Q3 on weak yen and rising inflation
RBA Minutes: Board doesn’t rule out return to 50bps, or pause
China’s retail sales surprisingly declines by 0.5% y/y in October, its first drop in five months
China’s industrial output expanded by 5.0% y/y in October vs. 5.2% uptick expected
China’s fixed asset investment up by 5.8% y/y
China’s jobless rate unchanged at 5.5% ytd/y in October
Asia shares rise while oil falls on China COVID outlook
Germany’s wholesale price inflation at an 8-month low of 17.4% y/y in October
UK jobless rate rises to 3.6% in September, vacancies and real wages fall as recession looms
German ZEW economic sentiment at 10:00 am GMT
Eurozone’s flash GDP at 10:00 am GMT
Eurozone’s trade balance at 10:00 am GMT
Eurozone’s ZEW economic sentiment at 10:00 am GMT
U.S. PPI reports at 1:30 pm GMT
Canada’s manufacturing sales at 1:30 pm GMT
Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! ? ?️
What to Watch: EUR/CHF
EUR/CHF 1-hour Forex Chart
European equity prices are starting the day on a strong(ish) note as traders digested mixed statement from Fed members yesterday.
Let’s see if we get a clearer direction for the common currency today as the region prints its latest GDP data. In addition to that, both Germany and the Eurozone are also releasing ZEW economic expectations reports that might influence risk-taking in the region.
More risk-taking could bust EUR/CHF from its Double Bottom pattern on the 1-hour chart. As you can see, the pair is juuuust breaking above the pattern’s “neckline” near the .9780 levels.
EUR strength could push EUR/CHF to the .9800 psychological handle or the .9830 previous inflection point closer to the 200 SMA.
If risk aversion rears its head up again, however, or if today’s reports highlight the Eurozone economy’s weakness ahead of the colder winter season (IRL winter, not crypto winter) then EUR/CHF could dip back below the Double Bottom neckline.
Watch out for a trip back to the .9740 lows or even new monthly lows in case of a risk-averse or anti-EUR trading environment!
