Daily Outlook: The pair is more or less ranging at the moment as traders attempt to digest the complex fundamental environment. As most know I view the short-term bullish technicals as a retracement and expect the USD to resume its gains in the longer term picture. We do have some major news events tomorrow that could help shape the market - the largest of which is the USD interest rate decision at 19:15 gmt along with the FOMC minute. Analysts expect the rate to remain unchanged but the FOMC minutes could go a long way to putting the USD back on its bullish path (e.g. depending on how strong they describe the US economy's growth, this could be taken as evidence that the Fed will raise rates .75 points by year's end). Read more about the news events at the Forex Calendar here.
Technically the picture is mixed but more short term bullish than bearish.
Trading Idea: My primary trade is the same as yesterday: a long from rising trend support currently at 1.3600. Preferred targets from this area are 1.3625, 1.3660, 1.3690. However if the pair rises before sinking I will consider a more aggressive short (with confirmation) in the 1.3700-1.3725 resistance zone. Ideally in that setup the pair would continue to trickle upwards before kicking a shooting star or other bearish candlestick. Short targets from 1.3700 are 1.3670, 1.3640 and 1.3610.