Recap: A better support line did form yesterday but was never broken, so we remained flat on the EU pair. The pair has been consolidating in a tight 100 pip range (1.2440-1.2540) 30 hours as the pair seeks some direction.
On longer term charts the pair is in downtrend on general Eurozone worries. In the past couple weeks, however, bulls have found some solid ground on hopes that the IMF and the Fed will keep the global economy afloat.
At this point we will look to take a trade in either direction, with a slight preference given to selling due to the longer term trend.
Today's Important News Events:
|05:30||EUR French Consumer Price Index (YoY) (MAY)||2.0%||2.1%|
|05:30||EUR French Consumer Price Index (MoM) (MAY)||0.0%||0.1%|
|06:00||EUR German Consumer Price Index - EU Harmonised (YoY) (MAY F)||2.1%||2.1%|
|06:00||EUR German Consumer Price Index (YoY) (MAY F)||1.9%||1.9%|
|08:00||EUR Italian Consumer Price Index - EU Harmonised (MoM) (MAY F)||0.0%||0.0%|
|08:00||EUR Italian Consumer Price Index - EU Harmonised (YoY) (MAY F)||3.5%||3.5%|
|12:30||USD Advance Retail Sales (MAY)||-0.2%||0.1%|
|*To see a more extensive list of news events (not just those we consider important), visit our Forex Calendar.|
Trading Idea: As mentioned above we will look for a breakout trade in either direction: short on support break or long on resistance break. Targets at 20/20/25/25 for 90 pips profit. If a false breakout occurs with a nice long wick we will take a trade in the OPPOSITE direction (e.g. if a false break of resistance occurs we will get short) for all pairs today.