Recap: No trades were triggered from yesterday's signal as the price never rose enough for us to get a good short price. Price continues to consolidate after the large drop from yesterday morning.
Today's Important News Events:
|09:00||EUR Euro-Zone Producer Price Index (YoY) (MAR)||3.4%||3.6%|
|11:45||EUR European Central Bank Rate Decision (MAY 3)||1.00%||1.00%|
|*To see a more extensive list of news events (not just those we consider important), visit our Forex Calendar.|
Biggest news out today is the ECB interest rate decision, which we expect will be held steady at 1.00% and therefore won't impact price action much.
Poor european economic performance continues to be the fundamental driver behind the USD strength, with employment rates among Euro countries at a 15-year high and no clear sign of improvement for the future. Luckily this is forex and we profit no matter which way the exchange rate is going :).
Technically after the big drop yesterday morning the pair has taken out several intraday supports and has a bearish outlook, so we will primarily look for reasons to get short.
Trading Idea: Despite the bearish outlook we will first look to establish an aggressive long on a resistance break (as there is a decent resistance at the moment) with targets at 20/20/20/20 for 80 pips profit. We will move our SL early and often to minimize risk and also look to close and get short on a support break when one forms.