Daily U.S. Session Watchlist: EUR/USD

National Financial Solution > Forex Trading > Daily U.S. Session Watchlist: EUR/USD

A lack of top-tier data makes me believe that traders will focus on risk sentiment today.

Will EUR/USD start the week with an upside breakout?

Before moving on, ICYMI, I’ve put together a short recap of what happened in the markets and the major currencies on May 10 – 14. Check it out!

And now for the headlines that rocked the markets in the last trading sessions:

Fresh Market Headlines & Economic Data:

Upcoming Potential Catalysts on the Economic Calendar:

  • Canada’s housing starts at 12:15 pm GMT
  • NY manufacturing index at 12:30 pm GMT
  • NAHB housing index at 2:00 pm GMT
  • FOMC members Clarida, Tenreyro, and Bostic to give speeches today

What to Watch: EUR/USD

EUR/USD 1-hour Forex Chart
EUR/USD 1-hour Forex Chart

If you were around near the end of last week’s trading, then you’ll know that risk sentiment improved a bit after taking a hit earlier in the week.

With not a lot of top-tier economic reports on tap, I’m thinking that European and U.S. session traders will go with the flow and continue to price in economic reopenings in the Western countries.

A bit more risk-taking could lead EUR/USD to retest the 1.2150 handle that has been serving as resistance since late April.

If EUR/USD breaks above the level, then it could target the 1.2200 psychological level or even its February highs closer to 1.2240.

But if traders start worrying about high-yielding bets again, or if traders acquire a taste for the U.S. dollar ahead of the FOMC meeting minutes release, then we could see EUR/USD drop back down to its May trend line support.

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