Recap: No trades were taken yesterday in EU as price continued to stay underneath our falling resistance line. We did say we were bearish yesterday and expected to see 1.2950 and 1.30 – we just didn’t expect to see them so soon!

Price has now formed a bearish flag pattern after the deep drop yesterday (the flag pole) and is consolidating just above our blue rising support line (a proximity alert was sent off at 1.2977 and has risen 15 pips since then).

If that support, currently at 1.2950, is broken then 1.29 and 1.2850 are the next major support levels.

Today’s Important News Events:

DateTime (UTC)EventForecastPrevious
Wed
Oct 24
00:30AUD Consumer Prices Index (YoY) (3Q)1.6%1.2%
  
 08:00EUR Euro-Zone Purchasing Manager Index Composite (OCT A)46.546.1
  
 18:15USD Federal Open Market Committee Rate Decision (OCT 24)0.25%0.25%
  
 *To see a more extensive list of news events (not just those we consider important), visit our Forex Calendar.
 

Trading Idea: We are still bearish on the pair and we will look to get short on a support break with targets at 80 pips and SL at 50 pips.

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