Tuesday's FX Analysis: 3 Days Of Chop, 2 Days Of Breakout
Littlefish FX | Apr 09, 2013 04:32PM ET
Another quiet day for the markets meant pairs could continue to grind higher against the U.S. dollar.
Bernanke's overnight comments didn't manage to quell any of the current nervousness around poor U.S. and Chinese data.
Good data from the U.K. this morning provided a small boost to the GBP, but markets have been extremely light on real volume.
There seems to be a pattern lately: 3 days of chop and 2 days of breakout trading. Thursday and Friday could easily be this week's breakout days.
Wednesday could be another quiet day: FOMC minutes are the only key data due for release, and not before 7pm GMT.
Tomorrow's minutes are from the end of March meeting, when NFP numbers were far better. Comments may reflect a more positive U.S. outlook compared to recent data. Today's comments from the Fed's Bullard suggest that recent poor U.S. data is not of great concern yet.
EUR/USD
The euro ground higher today, and still remains within a good range for further upside momentum. We prefer longer term Bearish moves and short term Bullish moves, but will now start to look for short options below the 1.3200 level.
Personal Bias: Short term Bullish / Longer Term Bearish
Support: 1.2900
Resistance: 1.3050
Strategy: Wait for clear signals
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