Bullish correction on Euro pairs continued from our technical analysis yesterday. Fundamentally, prospect of fresh money injections from International Monetary Fund raised hopes, as well as successful debt auctions in Germany and Portugal bounced the market up.
Let’s quickly look at EURUSD daily chart:
EURUSD is edging towards the key decision area at 1.2900. This is where we can expect bears and bulls to play it out to gain control. This area also brings some opportunity to get into some good long term trades.
News calendar looks busy dominated by three key news items from US. We have Building Permits, Core CPI m/m and Unemployment Claims later in the day. Needless to say, keep an eye and avoid opening news trades close to these news items.
Forex Trading Signal : Primary trade is to look for short opportunities around 1.2900-10 area.
In case of strong upside movement, wait for breakout and close above 1.2900 and then enter long trades (secondary trade).