With a couple of Eurozone data events on tap, you can bet that we’re looking at EUR pairs today!
EUR/USD looks ready to extend a longer-term trend after a short consolidation.
What do you think of the pair’s 1-hour setup?
EUR/USD 1-Hour Forex Charts by TV
If you’ve just tuned in the financial markets today, you should know that traders are generally leaning bearish while they wait for fresh market catalysts.
EUR/USD, in particular, is ranging tightly between the 1.0620 – 1.0680 levels ahead of the German IfO business survey and ECB President Lagarde’s testimony in Brussels.
We don’t have a lot of top-tier releases in the economic calendar today so keep an eye on how EUR/USD reacts to the Eurozone’s calendar events.
If the markets focus on the Fed’s hawkish “higher for longer” message, or if today’s themes highlight the ECB’s lack of options other than a rate hike pause, then EUR/USD may see a new round of sellers.
EUR/USD may break below its current range and retest the 1.0600 major psychological level if not the 1.0550 previous area of interest.
For now, we’re looking at a possible entry near the 1.0680 top of the range and 200 SMA area. The German IfO and/or Lagarde events may fire up EUR bulls and take EUR/USD to the potential resistance zone.
If the events turn out to be a non-mover or if USD-buying picks up without taking EUR/USD higher, then we can also consider selling below the consolidation as soon as the pair stays below its 1.0615 previous lows.
What do you think? Can EUR/USD extend its losses?
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