EUR/NZD is dipping from its intraday highs ahead of lower-tier economic releases from the Eurozone.
Will today’s downswing keep EUR/NZD in its uptrend pattern?
Before moving on, ICYMI, I’ve listed the potential economic catalysts that you need to watch out for this week. Check them out before you place your first trades today!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
Over the weekend, BOJ Gov. Ueda shared that Japan’s underlying inflation “is expected to decline” despite it remaining “a bit below our target”
Australia’s retail sales rebounded by 0.5% m/m in July (vs. 0.3% expected, -0.8% previous); annual sales were up by 2.1% – the lowest since August 2021
China halves stamp duty on securities transactions lowers margin requirement for buying stocks to boost capital markets
Price Action News
With not a lot of economic data scheduled for release, it was AUD and NZD that saw slightly increased volatility.
AUD, in particular, found support from better-than-expected Australian retail sales data.
It also didn’t hurt that China made moves to boost its capital markets by cutting its stamp duty on security transactions, lowering its margin requirements, and making it harder for institutions to sell stocks.
The optimism soon wavered, however, partly due to the U.K. markets being out on a bank holiday. Whether it’s by profit-taking or uncertainty ahead of this week’s market themes, AUD soon gave up most of its intraday gains across the board.
Upcoming Potential Catalysts on the Forex Economic Calendar:
U.K. markets out on bank holiday
Bundesbank President Joachim Nagel to give a speech at 12:00 pm GMT
China’s CB leading index at 1:00 pm GMT
U.K.’s BRC shop price index at 11:01 pm GMT
Japan’s unemployment rate at 11:30 pm GMT
Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️
EUR/NZD: 15-min
ECB President Lagarde’s hawkish speeches over the Jackson Hole weekend and NZD’s weakness during the Asian session bumped EUR/NZD to its 1.8330 intraday highs earlier today.
But the pair is seeing a pullback after briefly trading above the R1 (1.8320) Pivot Point level.
How low can EUR/NZD go before the buyers step in again?
I’m looking at the 1.8300 major psychological level or the 1.8285 mid-channel support for possible long entries.
A bounce from the areas of interest and then aiming for new EUR/NZD weekly highs could work if the anti-comdoll sentiment extends to the European and U.S. sessions.
Of course, EUR/NZD could see deeper pullbacks before resuming its short-term uptrend.
Watch EUR/NZD closely to see where EUR buyers return to possibly extend EUR/NZD’s bullish run before the week ends!
