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HomeForex EducationDaily Forex News and Watchlist: EUR/GBP

Daily Forex News and Watchlist: EUR/GBP

Reversal alert!

I’m seeing a fresh neckline break on the hourly chart of EUR/GBP, which means that a new trend is forming.

Will more sellers hop in soon?

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:

Chinese official manufacturing PMI fell from 49.5 to 47.4

Chinese official non-manufacturing PMI fell from 48.4 to 41.9

Chinese Caixin manufacturing PMI down from 48.1 to 46.0

Beijing tightened COVID-19 restrictions over the weekend

Australia AIG manufacturing index up from 55.7 to 58.5

Australia’s MI inflation gauge posted 0.1% dip in April

Australian ANZ job advertisements down by 0.5% in April

Japanese commodity prices up from 39.6% to 39.9%

German retail sales slipped by 0.1% vs. projected 0.3% gain

EU to propose ban on Russian oil by the end of the year

U.K. markets closed in observance of May bank holiday
U.S. ISM manufacturing PMI at 2:00 pm GMT
U.S. construction spending at 2:00 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/GBP

EUR/GBP 1-hour Forex Chart

The euro is off to a weak start this week, as the German retail sales fell short of estimates and posted a surprise 0.1% dip.

Does this spell more losses for the shared currency?

EUR/GBP just fell through the neckline of its head and shoulders pattern on the hourly time frame, indicating that a reversal from the uptrend is in the works.

The chart formation spans roughly 75 pips, so the resulting slide could be of at least the same size.

However, technical indicators are suggesting that buyers might still put up a fight. For one, Stochastic is indicating oversold conditions or exhaustion among sellers. Also, the 100 SMA is above the 200 SMA for now.

The gap between the moving averages is narrowing, though, so a bearish crossover might be looming. If that happens, more sellers could jump in and push EUR/GBP further south. Note that price has fallen below both dynamic inflection points, so these could hold as resistance moving forward.

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