Recap: Another solid day for us yesterday to continue the strong March/2013 start!
Our EURUSD short was triggered on the 1.3010 support break and jumped 40 or so pips into the profit before stalling out and rising back to its current levels of 1.2990. We will close out here for 20 pips profit.
We are staying flat on all pairs except AU today for two reasons: lack of solid S/R lines to swing off and the ECB rate decision is likely to introduce plenty of volatility into the markets today. That whip-lash like volatility is kryptonite to our swing trading system as it generally kicks out false breaks.
As far as the actual content of the monetary policy the markets are all ears and will likely be hyper-reactive to any changes in language. Bearish language on the eurozone economy, mixed with the threat of a euro-hostile Italian government, could send the USD soaring. On the other hand hawkish language could send risk-appetite and the EU through the roof.
Happy pipping, and be careful during the volatility!
Today's Important News Events:
|03:24||JPY Bank of Japan Rate Decision (MAR 7)||0.1%||0.1%|
|12:00||GBP Bank of England Rate Decision (MAR 7)||0.5%||0.5%|
|12:00||GBP BOE Asset Purchase Target (MAR)||375B||375B|
|12:45||EUR European Central Bank Rate Decision (MAR 7)||0.75%||0.75%|
|13:30||EUR ECB's Draghi Holds Press Conference After Rate Decision|
|23:50||JPY Nominal Gross Domestic Product (QoQ) (4Q F)||-0.3%||-0.4%|
|23:50||JPY Gross Domestic Product (QoQ) (4Q F)||0.1%||-0.1%|
|23:50||JPY Gross Domestic Product Annualized (4Q F)||0.2%||-0.4%|
|*To see a more extensive list of news events (not just those we consider important), visit our Forex Calendar.|
Trading Idea: We are flat for the day, on all pairs except AU, to let better S/R lines form after the ECB rate decision.
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