I stayed on the sideline, after the CPI news surfaced on Friday night. US consumer prices rose better than expected in the month and year on year comparison. For February, the headline number increased to 2.4 percent after the monthly figure rose by 0.4 percent. However, the core figure remained weaker, falling in-line with consensus estimates as underlying expectations were looking for a larger increase on higher crude oil prices.
Trading Tip – Since the year began, EURUSD has formed and broken out of two ranges. As of Friday, the pair was rising with considerable speed. With this in mind, there is considerable risk in selling short around 1.3370. Though the level is a clear pivot, it retains few other technical traits that would back its credibility. Therefore, shorts SHOULD only be placed after price action clearly reveals a turn. If EURUSD does not slow and stall before reaching 1.3370, then the momentum may carry it through resistance on a bigger move higher.
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