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Day by day Foreign exchange Information and Watchlist: EUR/JPY

All eyes and ears are on the ECB subsequent!

Does the central financial institution have a hawkish shock up its sleeve or are bulls in for a disappointment?

Earlier than shifting on, ICYMI, yesterday’s watchlist checked out EUR/JPY’s bullish pattern pullback forward of the BOJ choice. Make sure to try if it’s nonetheless a sound play!

And now for the headlines that rocked the markets within the final buying and selling classes:

Recent Market Headlines & Financial Information:

Russian President Putin says Nord Stream fuel flows to renew this week

EU President von der Leyen reiterates “full cutoff” of fuel a probable situation

Canadian headline inflation slowed from 1.4% to 0.7% vs. 0.9% forecast

Eurozone shopper confidence index slumped from -24 to -27

BOJ saved rates of interest on maintain and coverage unchanged as anticipated

BOJ Governor Kuroda: Is not going to hesitate to ease coverage additional if vital

Kuroda: Fast JPY weakening is undesirable

Tokyo to hike COVID-19 medical alert to highest degree

Italian PM Draghi says he’ll resign as coalition social gathering loses help

ECB financial coverage choice at 12:15 pm GMT
U.S. Philly Fed index at 12:30 pm GMT
ECB press convention at 12:45 pm GMT
Australia’s flash PMI readings at 11:00 pm GMT

Use our new Foreign money Warmth Map to shortly see a visible overview of the foreign exchange market’s value motion! 🔥 🗺️

What to Watch: EUR/AUD

EUR/AUD 1-hour Foreign exchange Chart

Able to commerce the ECB choice?

Right here’s a easy pattern play I’m watching on EUR/AUD.

As you’ll be able to see from the chart above, the pair has been trending decrease on its hourly timeframe. A check of the descending channel resistance appears to be underway.

Are euro bears more likely to leap in throughout the ECB occasion?

The central financial institution is broadly anticipated to announce a 0.25% rate of interest hike, which might be its first one in over a decade however nonetheless more likely to be a disappointment for a lot of.

In any case, the area is already scrambling to take care of surging inflation, so ECB policymakers are underneath stress to do extra with the intention to preserve costs in verify and keep away from a recession.

In different phrases, a 0.25% hike could be too little too late.

It doesn’t assist the shared forex that Italy could be going through a political upheaval, as PM Draghi mentioned that he would resign now that his coalition social gathering failed to attract sufficient help.

Nonetheless, the ECB may get inventive with different coverage tightening instruments and share deets on its anti-fragmentation instrument. TBD if this shall be sufficient to maintain the euro afloat, although.

In any case, be careful for EUR/AUD reversal candlesticks across the 61.8% Fib, which occurs to coincide with the 100 SMA dynamic inflection level.

This shifting common is under the 200 SMA to substantiate that the selloff is extra more likely to resume than to reverse, probably taking the pair all the way down to the swing low on the 1.4750 space subsequent.

Stochastic remains to be heading north, nonetheless, so there could possibly be room for the next pullback till the 200 SMA dynamic resistance.

Both manner, ensure to apply correct threat administration when buying and selling round an enormous information occasion!



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