Today's main event is Tirchet's speech regarding the recent developments in the European economy, especially the bailout plan issue. If the ECP president admits the truth and says that the bailout plan is not the answer for all of the problems, then the panics might take over again. Traders who like to trade during such important news, have to keep in mind that the market tends to get volatile during the moments of the event.
On the technical aspect, it is impossible to predict how the will react and therefore one should get prepared for any scenario. In this case, a break-up of yesterday's high at 1.383 might launch the Euro up to 1.40. On the other hand, a strong break-down of 1.365 might send it to 1.35 and below.
The Australian dollar has been strengthening against the USD for two years until the beginning of 2011. The pair has been stamping during the current year and it is pretty close to its opening levels. However, the weekly chart shows that the pair is moving in a wide-range channel and every time the pair touches the one of the channel's boundaries, it turns over towards the other boundary and starts a movement of hundreds of pips. It is possible, for experienced traders only, to try to take the pair up when it reaches the lower boundary around 1.29. If the current pattern remains, the pair might rise to 1.40 within a few weeks.