Deflationary pressure now the main focus in Europe.

Despite the stronger then expected German IFO today we have seen EURUSD push much lower on the back of lower then expected inflation data. The inflation data I think is more important to the Ecb and it is likely we see more dovish rhetoric from the the Ecb.

With this in mind looking at the daily chart on EURUSD key support now comes in at the 1.3685 and 1.37 area, if we can close below there we are likely to test the 1.3560 and then key support at 1.3475. The bearish signal was confirmed today as we formed a double top at 1.3770.

eurusd daily

I like selling rallies now in the EURUSD targeting a longer term move back down 1.33 in the coming months. On a intra day basis keep an eye on the 1.37 support and 1.3685 level mentioned earlier.

eurusd 15 minute