We are at a very interesting area on the EURUSD.
Yesterday the market broke a key structure momentarily before returning back inside the pennant formation.
On the EURO front, the EUR exploded higher on the news of a potential agreement on Euro Bonds and a weaker greenback.
However fresh news today from the French Finance Minister Le Maire suggested it will be difficult to convince some member states (Austria, Denmark, Sweden and Netherlands) to agree to the proposed German and French recovery fund.
This news may negatively impact the EUR in tonights session.
Risk events coming later tonight will see the ECB next interest rate decision (21:45) and Monetary Policy statement/ press conference (22:30).
There are no surprises expected on the ECB front tonight. However traders will be looking to the statement and press conference for an indication into future policy direction.
EURUSD Technical Analysis
4 Hour Charts
Potential fake break out to the upside of the pennant formation.
EURUSD 1 Hour Charts
Trade setup: SELL market execution, current price 1.0941, stop loss, 1.0981 and take profit target 1.0870.
Stop loss: 40 pips
Take Profit: 71 pips
If we see an early breakout to the upside we may pull the pin with a small loss.