The euro has recently pulled back from its previous highs, encountering strong resistance at the 1.1200 level. After two unsuccessful attempts to break through, the price has corrected to around 1.1100. Currently, the pair is trading within a range of 1.1200-1.1090, with the potential for different scenarios to unfold in the upcoming trading sessions.
If the price manages to break below 1.1090 and hold, a downward correction could be in play, leading to a decline towards 1.1050-1.0980. On the other hand, if the price consolidates above 1.1200, the upward momentum may resume, pushing the price towards 1.1400-1.1300.
Technical analysis of the EUR/USD pair suggests the possibility of a deeper downward retracement, as a “bearish harami” pattern has formed on the daily timeframe. Several key fundamental factors could influence the pair’s price movement in the near term:
– Speech by European Central Bank member Isabel Schnabel at 10:15 (GMT +3:00)
– Eurozone Consumer Confidence Index release at 12:00 (GMT +3:00)
– German Consumer Price Index (CPI) release at 15:30 (GMT +3:00)
– US Q2 GDP data release at 15:30 (GMT +3:00)
The EUR/CAD pair has also been exhibiting range-bound trading, albeit within a wider corridor. Despite a surge in price two weeks ago to test key resistance at 1.5200, the pair failed to consolidate above and dropped to 1.4970. Another attempt to break through 1.5200 last week was unsuccessful, leading to the pair trading at the lower boundary of the four-week range between 1.5220-1.4970.
A move below 1.4970 could signal a continuation of the downward movement towards 1.4880, while consolidation above 1.5200 could spark a new upward impulse towards 1.5600-1.5400.
Tomorrow, key events for the EUR/CAD pair include:
– German Unemployment Rate release at 10:55 (GMT +3:00)
– Canadian GDP release at 15:30 (GMT +3:00)
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