Recap: It looks like bulls finally won out in the battle of the consolidation wedge with a topside break coming early yesterday. The pair is currently flirting with 1.3200 (the next strong resistance) with 1.3250, 1.33 and 1.3350 as the big resistance levels above that.
Fundamentally the pair is being driven by risk appetite, which is a direct reflection of how the global economies are doing, which is a direct reflection of corporate earnings and profit, which is ultimately a reflection of consumer and business confidence in the recovery (got all that? :).
Technically the pair has made a bullish break out of its consolidation triangle - a short-term bullish swing signal - however we remain long term bearish on the daily charts and after the bearish double top in late March.
Today's Important News Events:
|06:00||EUR German Producer Prices (YoY) (MAR)||3.1%||3.2%|
|13:00||USD G-20 Finance Ministers, Central Bankers Meet in Washington|
|*To see a more extensive list of news events (not just those we consider important), visit our Forex Calendar.|
Trading Idea: Due to the mixed technicals, and the fact that it is Friday (9/10 times we don't trade Fridays due to the low weekend volume) we will remain flat for the day.
Have a good weekend!