Matt Simpson, CFTe, MSTA
CityIndex
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With the bulk of news from Eurozone and US then EURUSD is an obvious place to look for movement tonight. Due to Friday's upgraded GDP number from US, we do have risk of a good Personal Consumption Expenditure (the FED's real inflation gauge). Combine this with soft numbers from Europe and we should see new lows on EURUSD.
TECHNICAL ANALYSIS:
EURUSD: Seeking a break below 1.265
Traders are likely to sell into any rallies. Eurozone data is out first so any decent numbers here should see minor gains for Euro, which is likely to attract the attention of bearish swing traders to push it down further.
AUDNZD: May have another attempt to break 1.30
You may be spoiled for choice for which Kiwi Dollar pair to trade (as it is NZD weakness across the board) but trying to find a safer entry, near established S/R is what is proving difficult.
However AUDNZD seems to be forming a base around 1.12 with potential for a continuation pattern to form and target 1.13 during Europe or US session.
Keep in mind that Europe or US have not had time to react to the news of RBNZ intervention.
USDCNH: Targeting 6.19
The Morning Star Reversal pattern highlighted last week has formed a swing low price is now seemingly yen route towards 6.18-19.
Whilst there is risk of direct gain, we may be better to wait for price to overlap today's candle range some time later this week, to achieve a higher reward/risk ratio for a long position.
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