Stocks were mainly bullish on Friday, the Forex market in terms of classical correlation was bearish. Dow Jones Industrial Average rose 0.4%, the euro dropped 55 points. In this regard data on volume of trade numbers is relevant; except for the year’s high registered in the second half of December and January 10 and 11, the Friday’s trading session is characterized by the highest volumes for the recent six months, the highest volume was marked in the price range 1.3318 to 1.3330. Obviously it was where traders from January 17th placed stop losses; they were buying the euro according to strong U.S. housing data. As we mentioned earlier, massive attack on the euro would be launched when the situation was favourable. Probably the first wave of the attack was on January 18.
Today euro-area finance ministers meet (Eurogroup), tomorrow the Economics and Finance Ministers will gather (ECOFIN). Today it is holiday in the United States. Probably trading will be in narrow range.
Today’s trading range can be depicted from 1.3294, the high of December 20 till 1.3352, trendline resistance line on the H4. If 1.3294 is broken the price may reach the support line on H4 at 1.3266.