It was a disappointing showing for Europe yesterday, with a number of key data points not meeting expectations.

There is another chance today for Germany to try and turn things around, but the odds of some positive data at the moment appear slim.

Weak manufacturing data across the board, led by a very disappointing German PMI, really weighed the EUR/USD down and there could well be more in-store, if the German Business Climate disappoints.

The EUR/USD is already in a strong downtrend and looks like it could be on the verge of breaking down further, particular if the USD can bounce.

There is another interesting event during the Euro session, that will be worth watching, as RBA Governor Lowe will be speaking.

There is heavy expectations coming out of Australia, that he will strongly suggest the RBA is ready to make another rate cut by 25bp, which would see the cash rate fall to 0.75%.

As such, this is becoming a highly anticipated announcement and markets still have more room to price in higher odds of that cut. Either way, keep a lookout for the AUD/USD during the Euro open.

Forex Signal Update

It was the perfect start to the trading week for the FX Leaders Team finished with 4 wins from 4 signals.

NZD/USD – Active Signal

The NZD/USD will be in-play in the next 24 hours as we head towards the next meeting of the RBNZ. While there is no expectation of a cut in rates, we have to remember, they recently shocked the market with a massive 50bp cut, so anything is on the table. 0.6300 looks like great protection for this short signal.

EUR/USD – Active Signal

The EUR/USD broke under the 1.1050 level on the previously mentioned soft manufacturing data we saw yesterday and remains under a fair bit of pressure to the downside. The Euro really does feel heavy at the moment and a break of the lows here would be hugely bearish.

Cryptocurrency Update

As we suspected it might, BTC has made yet another attempt at the $10,000 level and once again the bidders stepped up around the $9,500 region.

This is the real test now as mentioned multiple times. We need to see either that level drop or an upside break.

So far the odds look like they are pointing to a downside break, but again, the best play is to wait for that to actually happen.