Weak US data yesterday coupled with high inflation data from the Eurozone has caused the Greenback to decrease in value even further. We have Germany’s ZEW index later as well as US PPI which is another inflation figure and if it is worse than consensus we might see the Dollar decline even further. Bernanke’s hopes of raising rates are quickly being disregarded..

Herewith the Probability Studies for Today:

EUR/USD – Bullish Trading Condition. The new bullish 60minute trend is still intact. We also have bullish 1 hour indicators and if price keep trending higher the 1 hour Stochastic will keep on opening to the upside. Remember that we have an overbought signal within a bullish probability which can be misleading

USD/CHF – Bearish Trading Condition. Price is trending lower within the newly adjusted bearish 60minute trend. We have bearish 1 hour indicators confirming the bearish trading condition

GBP/USD – Bullish Trading Condition. A Bullish 60minute trend accompanied by bullish 1 hour indicators places the Sterling in a suitable bullish trading condition. Keep and eye on the UK inflation figures later today as it will certainly dictate the direction throughout the day

USD/JPY – Bearish Trading Condition. The bearish trading condition is still intact due to the bearish 60minute trend as well as the bearish 1 hour indicators. As long as price keeps on taking out lows, the 1 hour Stochastic will keep on opening to the low side as well

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