Daily Asia-London Sessions Watchlist: EUR/AUD

National Financial Solution > Forex Trading > Daily Asia-London Sessions Watchlist: EUR/AUD

EUR/AUD hits the top of the Asia-London watchlist with potential economic catalysts from both Australia and Europe on deck. Will they push the bulls to retest major resistance once again?

Before moving on, ICYMI, today’s Daily U.S. Session Watchlist looked at NZD/USD as it forms a potential bullish price signal, so be sure to check that out to see if there is still a potential play!

Intermarket Update:

Equity Markets Bond Yields Commodities & Crypto
DAX: 15511.38 -0.96%
FTSE: 7100.88 -0.89%
S&P 500: 4343.54 -0.20%
NASDAQ: 14663.64 +0.17%
US 10-YR: 1.356% -0.076
Bund 10-YR: -0.265% +0.002
UK 10-YR: 0.637% +0.002
JPN 10-YR: 0.038% +0.001
Oil: 73.79 -1.82%
Gold: 1,797.20 +0.77%
Bitcoin: $33,964.50  -0.53%
Ethereum: $2,319.25 +3.33%

Fresh Market Headlines & Economic Data:

Dow drops 250 points, S&P 500 is set to snap 7-day winning streak

ISM Services PMI at 60.1 in June 2021 vs. 64 in May 2021

Oil touches six-year high after OPEC fails to get deal, then turns negative

Global dairy prices fall -3.6% from the previous auction on Jun 15

Gold firms near $1,800 level as U.S. bond yields drop

German Manufacturing in May 2021: new orders down -3.7% m/m

German investor morale points to continued recovery despite drop

Volume of retail trade up by 4.6% m/m in both the euro area and the EU

Upcoming Potential Catalysts on the Economic Calendar

Australia AIG Services Index at 10:30 pm GMT
RBA Chart Pack at 1:30 am GMT (July 7)
Japan Leading Economic Index at 5:00 am GMT (July 7)
Germany Industrial Production at 6:00 am GMT (July 7)
U.K. Halifax House Price Index at 6:00 am GMT (July 7)
France Trade Balance at 6:45 am GMT (July 7)
Italy Retail Sales at 8:00 am GMT (July 7)
U.K. Labour Productivity at 8:30 am GMT (July 7)

What to Watch: EUR/AUD

EUR/AUD 1-Hour Forex Chart
EUR/AUD 1-Hour Forex Chart

On the one-hour chart above of EUR/AUD, we can see sideways action in the pair all throughout the month of June, ranging between roughly 1.5700 – 1.5800. And we just saw strong volatility over the Tuesday session as broad risk sentiment soured quickly off of weaker-than-expected sentiment updates from both Europe and the U.S. This is likely the cause for the big pop in EUR/AUD from making lows just above the 1.5600 handle to its current trading area around 1.5770.

Looking forward, the volatility may not stop here for EUR/AUD with a business services sentiment from Australia and German industrial production data coming soon.  These aren’t usually major catalysts, but sentiment shifting a bit, they might be just enough to keep Tuesday’s action going.

We’ll be watching out for a retest of the top of the range around 1.5850 over the next session or two, and if the Australian data surprises us with a positive read AND we see weak German data, we’ll then be on the lookout for bearish reversal candles in EUR/AUD before considering a short position.

With a daily average true range of around 85 pips, reaching these areas are not out of the question, especially if volatility continues to remain high on fears that the global recovery is slowing down.

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