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EUR/USD
Yesterday the market did not do anything remarkable and basically continued to move without a specific direction. The good data that came from Australia gave some fuel to the ascending moves on the majors.
On the other hand, both economical releases that came from China came out worse than it’s previous and it shows there is a deceleration in China in parameters like personal consumption, building expenses, industrial production and retail sales. Those releases are more important to the world than the Australian data, therefore it will have a strong impact on the decisions of the traders regarding the direction of the market on the opening of the London session.
From a technical point of view, on a 4 hour EUR/USD chart the pair is moving in an ascending price channel and currently located on its high lip.
the main trend is descending, therefore we will look for Short trades rather than Long.
On the last 3 days the pair was correction the last sharp move upwards and still located under the Bollinger’s moving average, which is a sign for the continuation of the correction.
Possible trade can be selling on the breaking of the 1.2365 price level with a stop above the daily peak and target on the lower lip of the price channel.
You can see the chart below:
Important announcements for today:
09.30 (GMT+1) GBP – Trade Balance
13.30 (GMT+1) CAD – Trade Balance
13.30 (GMT+1) USD – Trade Balance
13.30 (GMT+1) USD – Unemployment Claims