Euro Session: A shaky start and a flat premarket for futures.

Futures in Europe are trading lower, after yesterday’s negative start to the week. before the beginning of the stock market session, they are trading in a narrow range, but they keep the overnight rise from the Asian session. Sentiment from Asia was positive, with most Asian markets slightly higher, extending the recovery from recent lows, as weak US data raised hopes that the Fed will not have enough room to raise interest rates further. US futures were flat in the Asian session after the broader market retreated yesterday.

In the currency markets today – Bank of Australia surprisingly raised interest rates, sending the AUD higher. The dollar weakened against most currencies, which supported the euro and the pound.

The focus for investors in Europe today will be PMI data from the UK construction sector at 11:30. with forecasts for a slight decline. Shortly after, the release of Retail Sales from the Eurozone is expected, which is expected to rise slightly on a monthly basis. The economic calendar today suggests a relatively calm session, with no other significant releases expected.

The German Dax failed to hold above 16K, but managed to close above 23.6 FIBO / matching the corrective channel breakout levels / which would give support during today’s session to the bullish participants in another attempt to return above the psychological level.

On the other hand, the fundamentals are cooling, which is also a serious headwind for the price. Momentum in euro markets is weakening, with European markets lagging behind most developed markets. To see a more serious rise in the price will require support from the economic fundamentals and a serious improvement in sentiment. Currently, the levels around 16,100 are the key zone that is being watched by traders. A close above these levels would give the euro bulls the support they need to continue the long trend, but as long as the price is below these levels, I expect pressure to keep trading in a wide range.

Key levels for today’s session: Support – 15,900 – a break below them will accelerate sell pressure. The resistance zone 15 950 – 16 00.