Keep an eye on: • TVC:DXY rally; • German data; • Italian news.
Keep an eye out for: • FX_IDC:XAUUSD and the price of other commodities; • Chinese data; • RBA Governor Rob Lowe's speech at the Australia-China Relations Institute in Sydney next Wednesday.
After the correction of the TVC:DXY the pair should go to 1.0100.
The Central Bank will offer more foreign exchange swap contracts, equivalent to the sale of dollars in the futures contracts.
Despite EUR/USD's rebound, 14-week momentum remains negative, reinforcing the underlying bearish market.
The USD/CHF is getting ready for a correction. In addition, the pair still has a clear divergence, as well as very overvalued.
Chinese data has been positive, the pair is oversold. Very probably there will be an attack of the bulls...
I believe that the EUR/USD will sideways in this week, with a small correction of the TVC:DXY , before turn way down more.
Waiting for a small correction to the slight divergence. But that depends on the TVC:DXY
The slowdown in Europe and the upbeat data in the US, as the 10-year yields topped 3% for the first time since 2011, cause the fall of the EUR! Keep your eyes open this week for GDP and CPI.
Be alert to the Economic Calendar and the indicators.
The next decent support is 1.2215/40. If EUR/USD falls below that, it could set course to test 1.2100 support, key support coming in at 1.2090. And: "This week we recommended going short EUR/USD" Bank of America Merrill Lynch Research argues.
With the FX:EURUSD is breaking down to 1.2090, it is up to the FX:AUDUSD to stay on their point or increase a little. In addition, an OCO is being formed on the daily chart.
The US dollar index TVC:DXY is at the highest level in eight weeks and FX_IDC:XAUUSD fell sharply. But the Aussie is oversold. Its recovery is very likely from the release of economic data to come.
Following the paths of the FX:EURUSD & FX:AUDUSD we will obviously have a low of FX:EURAUD . I believe the level of 1.5607 can be beaten this week.
China, Australia's Nº 1 trade partner, reported a surge in imports, the Trump Administration is now looking into a re-entry into the TPP agreement. Also, the Aussie often rises and falls along with the price of FX_IDC:XAUUSD , which is seen as a safe haven. And the weakness in stocks and geopolitical tensions are all positive factors call for a much higher gold price.
A barrel roll of the TVC:DXY and the OANDA:EURUSD take advantage.