From the FXWW Chatroom – EURUSD is inching lower as weak European data and a dovish ECB dominate the conversation. Today is day 63 of trading on a 1.13 or 1.14 handle and it feels like just a matter of time before we breakout. The last time we tried to break to the downside, the dovish Fed stopped Euro in its tracks. But this time is different, the Fed is as dovish as they will be for the next 6 months. The only risk you have if you are short is bad US data, and it still pales in comparison to the near recession levels of data in the EU.
So I am short and trading around my core view. The next 40 pips lower are they hard yards as there is a lot of gamma in the market, but it feels like just a matter of time before the break.
Key levels are 1.1300 and 1.1289 on the downside and 1.1360 and 1.1400 to the topside.
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