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HomeForex EducationEvery day Foreign exchange Information and Watchlist: EUR/USD

Every day Foreign exchange Information and Watchlist: EUR/USD

Will ECB hike charges by 75 bps or nah?

Let’s take a look at EUR/USD’s 1-hour downtrend forward of the central financial institution occasion!

Earlier than transferring on, ICYMI, yesterday’s watchlist checked out a new trend forming after GBP/AUD broke above a key resistance. Be sure you take a look at if it’s nonetheless a legitimate play!

And now for the headlines that rocked the markets within the final trading sessions:

Recent Market Headlines & Financial Information:

BOC raised charges by 75 bps to three.25%, the best borrowing charge since 2008

Canada’s Ivey August PMI jumps to 60.9, above July’s 49.6

EIA: U.S. crude output and petroleum demand to rise in 2022

RICS: Purchaser demand drops however report low inventory props up home worth development

Australia’s commerce surplus plummets from report highs as exports shrink

RBA Gov. Lowe: “…the case for a slower tempo of improve in rates of interest turns into stronger as the extent of the money charge rises”

NZ manufacturing gross sales down by 3.8% vs. 0.9% uptick in Q1

ECB’s policy decision at 12:30 pm GMT
U.S. preliminary jobless claims at 12:30 pm GMT
ECB’s presser at 12:45 pm GMT
Fed Chairman Powell to provide a speech at 1:10 pm GMT
U.S. crude oil inventories at 3:00 pm GMT
China’s CPI and PPI reviews at 1:30 am GMT (Sept 9)

Use our new Currency Heat Map to shortly see a visible overview of the foreign exchange market’s worth motion! 🔥 🗺️

What to Watch: EUR/USD

EUR/USD 1-hour Forex Chart

EUR/USD 1-hour Foreign exchange Chart

EUR/USD has been making decrease highs and decrease lows since late August when the pair noticed a big-ish downswing.

The pair is now buying and selling nearer to parity, which traces up with a descending channel resistance on the 1-hour time-frame.

Stochastic additionally favors a bearish transfer after juuuust leaving the overbought territory.

Recall that the euro discovered some help in opposition to the greenback earlier this week due to decrease Treasury yields and a little bit of profit-taking from USD energy.

However the eurozone continues to be poppin’ weak PMIs and is headed for an power disaster.

As we speak’s ECB occasion may shake issues up for EUR/USD’s downtrend.

Markets anticipate ECB President Lagarde and her workforce to lift their interest rates by at 75 foundation factors to fight excessive inflation.

Not all analysts are satisfied, although. Some consider that decrease development prospects would result in some restraint from some ECB members.

If markets aren’t satisfied that the ECB’s plans would assist inflation, or if right this moment’s Powell speech conjures up one other spherical of USD shopping for, then EUR/USD may prolong its downtrend.

EUR/USD may head in the direction of .9930 and even September’s lows close to .9880 earlier than EUR patrons present up.

In the meantime, prolonged risk-taking and USD-selling may push EUR/USD above its channel resistance.

A transparent break above parity may enhance EUR/USD to areas of curiosity like 1.0065 or 1.0125.

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