Recap: We sat on the sidelines on Friday, like we normally do, due to the volatility that comes along with the low volume weekend trading.
The pair did not make any major moves, but did have a nice upward flagpole that broke an intraday falling resistance and now appears to be forming a bit of a flag consolidation period which could spell more gains for the pair.
We really hesitate establishing a long on this pair at the moment as our going against the trend was our main source of losses in May. Luckily with our swing trading system our losses are kept pretty small, but we took enough to give us a healthy dose of skepticism. The big question right now is: what is a fair Euro/USD exchange rate given the risk of a Greek exit from the Eurozne (with Spanish problems looking large on the horizon)? 1.2? 1.1? 1.0? Any and all answers could have an argument made for them, however we believe 1.20 to be major support that will draw some much needed buyers into the pair.
Today's Important News Events:
|09:00||EUR Euro-Zone Producer Price Index (YoY) (APR)||2.7%||3.3%|
|*To see a more extensive list of news events (not just those we consider important), visit our Forex Calendar.|
Trading Idea: We will pass on the long opportunity this morning and instead wait for a rising support line to form and break for us to get short off of with targets at 20/25/25/25 for 95 pips profit.