This would certainly be an exciting week with ECB interest rates coming up on Thursday and Non Farm Payroll on Friday. Cyprus has managed to work out an agreement with the European Union This is caption from Reuters. “The president of Cyprus said on Friday the risk of bankruptcy had been contained and the country had no intention of leaving the euro, in a speech laden with criticism of Europe’s currency union for “experimenting” with the island’s fate.”
In Italy, there is still no coalition government as Former Italian Prime Minister Silvio Berlusconi insisted on Friday the only way out of Italy’s political deadlock was for his center-left rivals to accept a coalition deal that would give him a share in power.
So do lookout for these news to move the market for the EURUSD trades.
On the technical front, the EURUSD is trading in the 1.2676 and 1.3046 box. The EURUSD has been in a downtrend since early February and has moved 960 pips from the top. Price stalled for 2 weeks at around 1.3046 while waiting and absorbing news from the European Union before decidedly moving down. Currently I do not see signs of the sell trend momentum ending.
Price will have to close strongly below 1.2676 and then 1.2601 for me to have a continual bearish view. I would look for signal to determine the direction to trade when either of the two prices mentioned earlier have been hit.
On the other hand if price close strongly above the 1.3046 resistance, I would then look for a buy instead.