Today’s calendar looks interesting as we have an ongoing Economic and Finance Ministers meeting all day and the release of EU Economic Forecasts. That said all eyes will likely be in the US with Fed Chairman Powell set to speak and a precursor to tomorrow’s CPI set for release. We have month-on-month producer prices index coming in at 1230GMT, looking muted but the real concern for the Fed will of course be at the end demand level, comsumer prices.
Resistance
- 1.08213 – Bearish Trend Line
- 1.08069 – Yesterday’s High
- 1.07902 – Intraday Consolidation Resistance
Support
- 1.07604 – Intraday Consolidation Low
- 1.07229 – Double Top Pattern
- 1.06921 – Bullish Trend Line
Absent any fresh catalyst immediate risk for us appear to be for Euro to ease given the significance of the resistance and bearish divergence in the 4H charts. Note the proximity of prices to the bearish trend line in the daily charts even as we already see intraday price action taken us back down our previous breakout point. We can consider shorting Euro at market with stops above yesterday’s highs the immediate objective a test of the intraday consolidation low at 1.07604 to possibly forming a double top with its 1.07229 trigger. It would take a push through the bearish trend line for us to consider going long.
