Trade Team Update

Although we didn't move a whole lot today, we certainly had some events happen to take note of... as I indicted yesterday, breaking the 1.5800 level would happen before you know it... this morning we made a high at 1.5814 before retreating over 100 pips.

Fundamentally, the euro was under pressure today as Industrial Production proved to dissapoint to the downside. This is no big surprise as we already know growth in the Eurozone is slowing... the data simply confirms this. As I said in yesterday's update I still think the euro is on the bearish side, and I say this in light of the fact we're making upward movements. But, we'll talk more about those issues later on in the update.

Oil did make a new all-time high around the $135 level. Gold made some gains as well, but we did see some profit-taking during NY session which put more downward pressure on the euro vs. the dollar. The Dow came back today, unable to break the 12600 level and this was very USD supportive.

Tomorrow:

Out of the Eurozone we get French consumer data and PMI data... PMI could certainly dissapoint to the downside. Overall growth, production, and expansion is slowing, based on my research, so I would expect the data to print at or below market expectations.

The most watched data will be Existing Home Sales... really, what else is there to be said about housing? It sucks and it's not going to get any better in the short-term. The market's not really looking for signs things are getting worse, this is well established. The market is looking for signs of hope and recovery. An updside surprise should prove to cap any euro gains tomorrow.

EUR/USD:

My 1.5800+ target I called was hit today and that's really all I was looking at and looking for this week. I hope you were able to capitalize on the profitible euro move up to that level...

The euro did as I forecasted it would and as far as trading goes, I'm pretty much done for the week... the last thing I want to do is give any profits back to the market taking a dumb trade.

I do have some key levels to offer as of the writing of this post...

Key downside levels:

1.5711
1.5688
1.5662
1.5648
1.5629

Key upside levels:

1.5739
1.5758
1.5774
1.5808
1.5828

Short-term bias: EUR long

OK, as always, be smart with your trades and your leverage. Friday is one of those days that traders seem to find themselves giving profits back made during the week, so be methodical with your trading between now and the time the market closes.