Yen Meltdown

We were able to capture 24 pips working both sides of the EUR/USD pair yesterday. While the USD/JPY pair plummeted the EUR/USD pair had a much more controlled decline. We are currently long in an attempt to ride a counter trend rally. A key trigger sits at the intraday resistance of 1.3200.

Catch The Rally

After picking up a small 8 pip gain on our short position yesterday we were able to go long and ride the EUR/USD pair to the high of 1.3204.The market is currently consolidating around the 1.3200 level before its next run at January highs of 1.3295. We reopened our long position at 1.3217.

Resistance Holds

The EUR/USD currency pair made a run at 1.3200 during the Asian session, but failed to break through. A retreat to 1.3155 followed. Our indicators are during south and we will look to go short on a break below 1.3167.

Downward Pressure

Yesterday’s long position profits were helped by terrorist rumors floating around New York. The high of 1.3141 capped a 27 pip move from our trigger. Currently the market is trading around our daily pivot and indicators are pointing south. We’ll watch for any momentum which can move the market before we can trade. Shorts appear to be in order. We’ll look for a break of 1.3101.

Next Move?

We were able to capture a nice profit yesterday on our short play. Currently the EUR/USD currency pair is bouncing off of support at 1.3080. We will watch for the indicators to roll over from oversold and hope to take a long position north of 1.3104.

Rangebound

Yesterday’s market didn’t display much in the way of trading opportunities. We didn’t see the clear break of support we were looking for, but today should be different. We has US CPI data at 13:30 GMT. We expect to get a minimum of 20 pips following the announcement. Otherwise, the EUR/USD pair seems to be looking for stops to take out. Current indicators are lower, but we will watch for direction after the CPI numbers.

Testing Support

The EUR/USD pair is currently consolidating around our intraday support level of 1.3137. Indicators are pointing downward so a short play is in order. We’ll wait for a clear break of support.

Quiet Day Ahead

Today is a federal holiday in the US so expect little action. We will look to scalp small moves. Currently our indicators are pointing down and we will look to go short. Tomorrow and Wednesday promise to bring some volatility to the market. Tuesday has a number of releases from the Eurozone, and Wednesday has the Bank of Japan rate decision. This could have a dramatic impact on the US dollar.

Consolidation

It appears that the EUR/USD pair is consolidating ahead of US data. PPI numbers will be released at 13:30 GMT. Also due out today are housing numbers in the US. Yesterday’s increase in initial claims may also be felt today as the market expects a decline in housing starts and building permits. All of this could mean more weakness for the US dollar. Our intraday indicators are all pointing down. Our best bet for today will be to look for scalping opportunities on the way down.

The Fed Effect

Federal Reserve chairman Ben Bernanke sparked financial markets yesterday by
stating his belief that inflationary risks are receding, and that softer oil and
commodity prices this year will fuel growth. We were able to catch a ride on the
EUR/USD currency pair as it peaked at 1.3151. We are currently in "no man’s
land" with the Euro consolidating between support and resistance. As the pair
seems to be losing momentum, we will look for a breach of support at 1.3115 as a
trigger.

Euro Falling

After failing to break through the 1.3037 resistance barrier, the EUR/USD pair has been in a freefall. Our next support level is 1.2951.

Testing Support

We were able to capture 27 pips yesterday as Trichet mentioned ECB "vigilance" in his press release after leaving rates unchanged. This language has traders looking for a rate hike next month. With the current price of the EUR/USD pair at our intraday support, and indicators rolling over from over sold, we will look to go long with the cross of pivot at 1.3019.

Small Rally

We were able to capture 23 pips in the EUR/USD currency pair during today’s rally. With a rate decision coming from the ECB at 12:45 GMT, we will hold off on any new positions.

Testing Resistance

It appears that the EUR/USD pair will test the 1.3000 resistance area again today. The current bias is up and as our intraday signals are pointing higher, we will be going long.

Euro Unwinds

This morning we are watching the EUR/USD currency pair give way to weakness. Support at 1.2940 has been broken and we will ride our Euro short to 1.2914 and then 1.2905.

Waiting For Data

The EUR/USD currency pair remained in a tight range yesterday as all eyes were focused on today's non-farm payroll data. We feel that the consensus numbers are quite optimistic. In any event, look for a typical move following its release. We will look to capture a minimum of 50 pips.

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