Recap: No support break yesterday means no trade was triggered on the EU pair. The has bounced hard off the intraday rising support (bottom yellow line) that we have been watching for the past several months. In the short term price has turned up aggressively, forming a new short-term rising support (last blue line) that we will look to trade today given the opportunity.

Today’s Important News Events:

DateTime (UTC)EventForecastPrevious
Oct 4
11:00GBP BOE Asset Purchase Target (OCT)375B375B
 11:00GBP Bank of England Rate Decision (OCT 4)0.50%0.50%
 11:45EUR European Central Bank Rate Decision (OCT 4)0.75%0.75%
 12:30EUR ECB’s Draghi Holds Press Conference After Rate Decision  
 18:00USD Fed Releases Minutes from Sept. 13 FOMC Meeting  
 *To see a more extensive list of news events (not just those we consider important), visit our forex calendar.

Trading Idea: There is a bullish headwind on the hourly charts but we will look to get short on a support break of the aggressive short-term rising support we discussed above. Short targets at 80 pips.

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