Welcome to the first trading day of the week! We’ve got a ton on the forex economic calendar. I’ve also prepared a technical analysis on the EUR/USD pair as a EUR USD below pivot could create trading opportunity for you.
In other news, China dumped a bunch of data last week which added to the strength of the US Dollar. China’s economic growth rebounded on a quarter-on-quarter basis but maintained its pace on an annual basis. The annual reading did beat expectations and is still well within the PBoC’s projected growth rate, which has led some analysts to believe that further stimulus from China may be unnecessary.
It is a holiday in Japan celebrating the marine.
Today’s trading day kicked off with China’s House Prices at 1:30 AM GMT and the London session will be mostly quiet from an economic data point of view.
At 12:30 PM GMT Canada will release recordings of Foreign Securities Purchases by Canadians in the month of May.
The US will release their NAHB Housing Market Index at 2 PM GMT and later their Treasury International Capital (TIC) Net Long-Term Transactions at 8 PM GMT.
EUR USD Below Pivot – Technical Analysis
After breaking below the Ichimoku cloud, as well as a rising channel back in June, the Euro is now testing a new pivot level versus the US dollar. This particular level at 1.11 is very important because the pair has tested is both as a support and a resistance in the past two years.
EUR USD Below Pivot – Technical Analysis Daily Chart EUR USD Below Pivot – Technical Analysis Daily ChartCurrently the EUR USD below pivot is also forming a symmetrical triangle pattern which has already progressed 1/3 of its way. This week’s economic data could be crucial in determining the pair’s faith and the direction of its breakout.
Our next bearish target is set at 1.0860 while resistance is at 1.13.
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