European households are now starting to spend more on growing positive sentiment and increased household income, boosting local business. Despite the Union's drop in GDP back in 2020, homeowners were able to become wealthier which is a good sign for the euro area. GDP is also recovering, however, is still negative at -0.3% from the start of June. Germany experienced heavier flow of business activity this month off a nice jump in PMI data as purchasing managers become more confident in the country's economy. Italy now has the lowest population relying on unemployment benefits as the overall number of furloughs in Europe has declined.
Our outlook
Europe's economy has been able to bring back their GDP to "normal levels" although they still struggle with other problems. Another to consider is their rising 10-year bond yields and rising yield projections in the next few years. The higher yields suggests a currency that might continue to gain value over time. 2022 is also projected to have the best GDP growth in years, and expectations are better to be bullish on than actual numbers.
Trade Setups
EURUSD
EURUSD
EURUSD comes up near a top on the 4H after mixed PMI data last night before minor retracement. Additional resistance is above around 1.19894 after bouncing off big support. Price may make a higher low on the this timeframe and test that resistance level. However, a break under this upward trend line could be a bearish sign for the pair.
EURCAD
EURCAD
The 4H chart shows EC in a consistent sideways channel which looks like a consolidation zone. Price is currently on support at the bottom of this channel but looks like it could create a higher low. If that happens, we could expect price to hit the 200 SMA on this timeframe and test resistance.
EURJPY
EURJPY
EURJPY came all the way up to resistance and retraced on the 4H. If price can try resistance at 132.695 once more, it may have enough momentum to break above, but would be met with the pair's 200 4H SMA. This recent strong upward momentum found support on 132.150s which has maintained stability above this level so far.
A1 Edgefinder
Watchlist
Save time looking for setups with the EdgeFinder's watchlist! In a glance, see the EdgeFinder's current top buys and top sells.
Gold is up nearly half a percent today while USD down a third of one as of 10:18 am EST. As we wait for the upcoming and looming NFP numbers this Friday, we can assess the economic data we already have. EdgeFinder Analysis The stock market sighed in relief after the debt ceiling bill finally […]
The dollar flew higher last week as a result of resilient economic news along with a higher PCE than expected. Now the DXY has reached a decision point in price action. This week's NFP will help determine the sentiment around the potential June rate hike. Here is what we are looking at: EdgeFinder Analysis USDCAD […]
Considerably dovish news from central banks in the US and New Zealand has caused a major stir in the markets. Governor Orr and Vice Chairman Powell both released some reassuring news for the economy in the long term. But what does this mean for USD and NZD? EdgeFinder Analysis GBPNZD is a pair that should […]
DISCLAIMER: All comments made by TraderNick’s Forex Group, LLC are for educational and informational purposes only. All comments should not be construed as investment advice regarding the purchase or sale of any securities or financial instrument of any kind. Please consult with your financial adviser before making an investment decision regarding any securities or financial instruments mentioned by TraderNick’s Forex Group, LLC. TraderNick’s Forex Group, LLC assumes no responsibility for your trading and investment results. All information on any of the platforms utilized by TraderNick’s Forex Group, LLC was obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. TraderNick’s Forex Group, LLC, its employees, representatives, and affiliated individuals may have a position or effect transactions in the securities and financial instruments herein and or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies. Trading of any type involves very high risk and may not be suitable for all investors. TraderNick’s Forex Group, LLC, its subsidiaries and all affiliated individuals assume no responsibility for your trading and investment result. Read our full disclaimer here