With the EURUSD structure lacking any real technical setups in the last few weeks, I stayed out of the pair. The new low last week gave hope of a possible direction and that the market bears might be in control. With soft US Retail Sales numbers of Friday the Euro quickly regained ground on the Dollar. A continuation of that sentiment was felt today and the price reached the previous highs. The reaction seems to have oversold this pair and priced in tomorrows Euro GDP numbers, so any future direction will be based on what gets released.
Non the less, I am short on this pair and will await the GDP numbers. Stop is above 1.10 and target is WM1 for the week. This seems like a sell the Dollar Monday and buy it back Tuesday like scenario but any bearish bias will have to come from less than anticipated Euro zone GDP numbers and then a dovish tone from Draghi and ECB Monetary Policy Report on Thursday. The later of which always seems to be a gamble. I will keep a close eye on this one.
Took a loss on this one Euro GDP numbers were as expected but EuroStat trade balance numbers beat estimates, which drove up prices into 1.1060 levels. The nest area of prominent resistence is at 1.1110-1.1150. I will be keeping an eye on counter trend opportunities and a possible reversal from those levels.