EURUSD: bulls ready for new highs
On Monday the 15th of April, trading on the euro closed slightly down. The pair dropped to 1.1298, slipping further to 1.1293 in Tuesday’s Asian session. As I see it, this was a technical correction.
General negativity in the US session was caused by the Canadian dollar, which suffered a steep decline after the publication of the Bank of Canada’s business outlook survey for Q1. Following this report, the BoC is unlikely to raise interest rates in the coming meetings.
Day’s news (GMT+3):
- 11:30 UK: ILO unemployment rate (Feb), claimant count change (Mar), average earnings (Feb).
- 12:00 Germany: ZEW survey – economic sentiment (Apr).
- 15:30 Canada: manufacturing shipments (Feb), Canadian portfolio investment in foreign securities (Feb), foreign portfolio investment in Canadian securities (Feb).
- 16:15 US: industrial production (Mar).
- 16:50 Eurozone: ECB’s Novotny speech.
- 17:00 US: NAHB housing market index (Apr).
- 21:00 US: Fed’s Kaplan speech.
- 23:30 US: API weekly crude oil stock.
The euro underwent a correction, but failed to reach 1.1285. This is a good sign for the bulls, as we could see the start of a new rally from the balance line. The hourly indicators have unloaded, so the bulls are preparing to revisit the 1.1324 high.
The pair is hovering around the 67th degree within the downwards channel. The channel is formed from three levels: 1.1324, 1.1293, and 1.1321. The support has shifted to 1.1292. The pair shouldn’t revisit 1.1290. If the Asian low is revisited, I’d advise holding off on opening any long positions. A sustained flat around the trend line and the 1.1282/90 range will lead to a subsequent drop to 1.1270.