Attention is likely to focus on the euro's price movements during European trading hours
05.07.2022
- U.S. Manufacturing Orders Index
- Bank of England Releases Financial Stability Report
On the previous day, U.S. currency markets lacked direction due to a U.S. holiday, and the EUR/USD pair traded within a range of 1.0416 to 1.0462. On the 4-hour chart, the EUR/USD is caught between support at the lower end and resistance at the 20-day moving average. Therefore, I plan to remain on the sidelines until a clear trend emerges.
European currencies fell against the Oceania currencies yesterday, partly due to Germany’s trade balance slipping into the red.The EUR/AUD pair fell by more than 180 pips from 1.5353 to 1.5169. This resulted in a significant break below the 20-period moving average on the 4-hour chart. However, since the price has not yet established a new low, attention should be focused on whether the pair will break below the recent low of 1.5062 with a real body candle.
Today, at 15:45 Asia time, France’s industrial production and manufacturing production index will be released; during European trading hours, at 16:50, France’s services PMI; at 16:55, Germany’s services PMI; at 17:00, the Eurozone’s services PMI; at 17:30, the UK’s services PMI; and at 18:30, the UK’sthe BOE Financial Stability Report, a press conference by BOE Governor Bailey at 19:00, Canadian housing starts at 21:30, and the U.S. manufacturing orders index at 23:00. We will be watching the euro’s price movements as we move into European trading hours.
Author: Keisuke Sakurai
