Rates on hold!!!   Trichet gave a speech today indicating the ECB will keep a close watch on the economy and act appropriately.   As most traders had expected the ECB to increase rates before the end of the year, our good friend Jean Claude dismissed that.   In doing so the Euro sold off and fell to the major support zone around 1.5300.   In the past there has usually been a bounce when touching on these kind of support levels; NOT TODAY.   Could this mean that the Euro bears are ready to enter the market?   Time will tell and 1.5285 is the zone the bears will be looking to close below for this bear leg to further show itself.   Today’s support was 1.5400 which we could say is now resistance.   A close above there could bring the bulls back up to 1.5650, which is near the 50% retracement.

Also, rates on hold!!!   Price pushed down to the major support zone of 1.9425 where it has built a nice base for the last 6 months.   Looks to be a little over sold right now and could make an upswing to find some resistance before making another possible bear move.   The previous support, now possible resistance, looks to be at the 1.9700 zone.   In order to make a strong bear confirmation over the long term price might need to close below the very low of 1.9340.   That could lead to a sharp drop to 1.9000 and even further to 1.86.

Not a whole lot of excitement here compared to the other majors today.   We stayed in a 50 pip range during the trading day.   This pair has a history of breaking through a major resistance level and then trading in a tight range for a while before making another big move.   Refer back to February 13^th to see.   It will be interesting to see if 110 and 110.58 are taken out.   If so then there could be the possibility to move past 111 and even all the way up to 113.50 where there is historic turn pivots.   On the other hand, 108.56 is the previous high and could be the next support level if price action decides to move back to it.