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Forex Trading StrategiesEUR weakens after ECB press conference
ECB's Trichet commented that growth risks are broadly balanced and the market send EUR lower on more uncertainty if the ECB will hike in May.
MAJOR HEADLINES â€“ PREVIOUS SESSION
â€¢ US Intial Jobless Claims April, out at 299K vs. 305K expected.
â€¢ US Continuing Claims March, out at 2440K vs. 2483K expected.
â€¢ Canada's Ivey Purchasing Managers Index March, out at 67.2 vs. 62.0.
â€¢ Australia's Home Loans Feb., out at 1.1% vs. 0.5% as expected.
â€¢ Australia's Investment Lending Feb, out at 2.0% vs. -1.3% in Feb.
â€¢ Fed's Moskow warned policy would respond accordingly if inflation expectations were raised.
THEMES TO WATCH â€“ UPCOMING SESSION
We saw a sell-off in EURUSD as we anticipated as the 1.2330 level looked very much as the profit target area trading wise. The building blocks are still intact for a bullish EURUSD looking ahead, but the technicals are not able to push higher. So we favor the US trade balance next Wednesday to be the next building block for a higher EURUSD with a break of 1.2350, likely leading to more buying interest.
Today we have US non-farm payrolls which usually adds short term volatility. The number is anticipated to be good supported by Snow's comment Wednesday. So the scenario for a surprise is a weaker dollar, but more importantly is the daily close after the NY session, which needs to be above 1.2090 to remove us from the old trading range.
Note: the support/resistance levels used in the matrixâ€™s of this document are levels derived from yesterday high, low and close. Reference in the text to other support/resistance levels will occur.
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