Market gamers could also be on vacation mode today, however I’m nonetheless seeing some first rate strikes on EUR/USD.
Is the pair gearing up for a fast retest?
Try these near-term inflection factors!
Earlier than shifting on, ICYMI, Friday’s watchlist checked out AUD/JPY’s transfer in the direction of a serious assist zone. Be sure you try if it’s nonetheless an excellent play!
And now for the headlines that rocked the markets within the final buying and selling periods:
Contemporary Market Headlines & Financial Information:
U.S. pending residence gross sales flat in November vs. estimated 0.8% m/m uptick, following earlier upgraded 1.2% decline to carry at lowest degree on report
U.Ok. Nationwide HPI confirmed no change in home costs for December vs. estimated 0.1% m/m uptick, chalking up a 1.8% decline year-to-date
PBOC set yuan at stronger degree with USD/CNY at 7.0827, its lowest degree since Might
Swiss KOF financial barometer up from positively revised 97.2 studying to 97.8 in December vs. projected drop to 96.9 because of stronger manufacturing exercise
Spanish flash CPI down from 3.2% y/y to three.1% in December vs. estimated 3.2% determine with core inflation displaying extra indicators of easing
Worth Motion Information
Overlay of USD vs. Main Currencies Chart by TradingView
It was one other comparatively quiet day within the monetary markets, as merchants are seemingly closing their books and chillin’ earlier than the New Yr festivities over the following few days.
Main pairs have been principally caught in ranges, though the greenback did handle to chalk up some first rate positive aspects towards its safe-haven rivals specifically the yen and franc. On the flip aspect, the commodity currencies such because the Aussie and Kiwi held on to some winnings because of developments in China.
Because it seems, the PBOC set the yuan at a stronger degree with USD/CNY at 7.0827, its lowest for the reason that finish of Might, which has been bullish for AUD and NZD.
Upcoming Potential Catalysts on the Financial Calendar:
U.S. Chicago PMI at 2:45 pm GMT
Use our new Foreign money Warmth Map to rapidly see a visible overview of the foreign exchange market’s value motion! ️
EUR/USD 15-min Foreign exchange Chart by TV
This pair has been shifting sideways right this moment, as vacation doldrums appear to be weighing on FX volatility.
Nonetheless, profit-taking earlier than the yr lastly involves an in depth may result in a fast pop greater, probably taking value as much as the close by space of curiosity.
EUR/USD is hovering near the damaged assist zone close to the pivot level degree (1.1090) that may be sufficient to maintain positive aspects in verify. If that’s the case, the pair may resume its slide to the draw back targets at S1 (1.1030) and even S2 (1.1000) at a serious psychological mark and intraweek lows.
A transfer above the world of curiosity, nevertheless, may pave the way in which for a check of the upside boundaries at R1 (1.1120) then R2 (1.1170) if euro bulls refuse to again down.
Do notice, although, that Spain’s flash CPI for December fell wanting estimates whereas the core model of the report confirmed extra indicators of easing, seemingly dampening hopes of ECB tightening anytime quickly.
In the meantime, the U.S. greenback has the Chicago PMI determine to sit up for, probably triggering a remaining bout of volatility earlier than the tip of the week.
