Recap: We took Tuesday's long trade on the chin for -50 pips as the pair broke our resistance level and then almost immediately continued downward. We were bearish on the pair, as we stated, but thought the oversold hourlies would provide us enough of a platform to bank some long pips.

Today the pair is still very bearish looking technically, thanks to the fundamental outlook in Europe, but the large stab downward yesterday has the characteristics of an extinction candle. Combined with the 04:00 hammer candle that occurred at the bottom of that dip and we may finally be seeing a bit of a curl upward. Unfortunately there are not any good S/R lines to swing trade off of at the moment.

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Today's Important News Events:

DateTime (UTC)EventForecastPrevious
Wed
May 16
08:30GBP Jobless Claims Change (APR)5.0K3.6K



09:00EUR Euro-Zone Consumer Price Index - Core (YoY) (APR)1.5%1.6%



09:00EUR Euro-Zone Consumer Price Index (YoY) (APR)2.6%



09:30GBP Bank of England Inflation Report




18:00Fed Releases Minutes from April 24-25 FOMC Meeting


23:50JPY Nominal Gross Domestic Product (QoQ) (1Q P)1.0%-0.5%



23:50JPY Gross Domestic Product Annualized (1Q P)3.5%-0.7%



23:50JPY Gross Domestic Product (QoQ) (1Q P)0.9%-0.2%



*To see a more extensive list of news events (not just those we consider important), visit our Forex Calendar.

Trading Idea: We will wait for a clear rising support to form (not yet shown) and then get short on a support break with targets at 20/20/25/25 for 90 pips profit. PRO emails will be sent on a support break.