I’m generally a bear on the Euro. Though there are top tier economic data coming from the Euro zone this week, the most vital one is the ECB’s monetary policy announcement. Though changes are not expected, Mario Draghi will hold a press conference and the bank will share their latest economic outlook. Also with the 10y T-Note at the bottom of the range, It’s move up towards the top would result in yen strength.

Price opened at what was resistance at the beginning of the month at 119.2 between WM2 and WPP. We saw it break that level only to find resistance at MM3. This level might be seen as the top of what is to become a range should price fail to break above it.

With overbought stochastic, Price failed to break a key level of resistance at 121.00. Price opened belowe WM3 at 120.83. Note the confluence between WM3 and MM3. Euro would look for selling opportunities from here on.

Price is currently at support also with the 21 acting as dynamic support. As a bear I would wait for a break down through this level and sell the lower high at DPP. Also having had price come off the 55 moving average, we might see price a double top reversal pattern.

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