On the Euro side:

• ECB has left inflation forecasts unchanged and lowered 2018/19 GDP estimates
• Draghi noted that uncertainty surrounding underlying inflation appears mitigated
• Euro now at fresh monthly highs

On the USD side:

• CPI rose 0.2% last month, below economists' expectations for a 0.3% increase
• Not expected to sway the Fed from hiking, but signs of a possible top
• A September hike is fully priced in, and USD continues to slide as expectations are managed

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After EUR/USD returned to swing highs, we had a decision to make around whether to close longs here, or play for the breakout. Click the link to yesterday's blog, or read the extract below:

We've since seen price pull back to retest that support level that we were using to manage our risk around and then got a nice rip city move off of it, straight back to the highs.

From here, you should be sitting pretty depending on your risk:reward at the bottom there and now have the option to close at swing highs or hold for a play at the trend line breakout.

Well as you can see, Draghi ensured a EUR/USD breakout and we've now held above resistance quite nicely:

This one all unfolded pretty cleanly in the end.

Best of probabilities to you.

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@danewilliams | Steemit Blog

Market Analysis

Twitter: @danewilliamsau