Keep an eye on EUR/USD after last week's decision by the European Central Bank to wait at least another month before rising the deflation risk. It spiked higher on Friday but later dropped down below break out area at 1.39500. A drop below short term moving averages means that sellers took control and it is something active buyers should take notice of. It is difficult to sell here after such a big move. My plan is to wait for a retracement and if sellers want to keep control of price, they don't want to give back 1.38040 and then 1.38300. Pivot support at 1.37436 right at 100MA.



Meanwhile, the modest strengthening with the Yen has alerted the calculus for investing in Japan, for which USD/JPY deserves a close attention in the week ahead.  Previous week it broke down consolidation support 102.000-102.040 and had a nice follow through to 101.421 and entered into a wide range with slightly bias to downside. A retest is expected from the previous week's lows and potential breakdown. In the morning, price confirmed resistance zone 102.000, consider Put positions close to that and additional follow through as it will break trend line.



USD/CAD pulled back aggressively after Friday’s news and now is building an upper level base, sentiment is a little bit mixed here but I will continue to trade it with Put option close to resistance zone at 1.09050-.09070 and on the breakdown of support at 1.08900, a downside follow through is to be expected.