€ The euro depreciated vis-à-vis the U.S. dollar today as the single currency tested bids around the US$ 1.3485 level and was capped around the $1.3590 level. The common currency came off despite light liquidity on account of the Easter Monday holiday and Bank holiday in some trading jurisdictions. Traders will pay close attention to a few key events this week. First, former Federal Reserve Chairman and former U.S. Treasury Secretary Rubin will testify in Congress this week about the economic crisis. Greenspan was on the tape yesterday saying the U.S. economic recovery has a "way to go" and said the build-up in inventories will expand. Second, traders will pay close attention to the Fed's meeting today in which policymakers will be discussing requests from Fed district banks to increase the discount rate. The Fed has raised the discount rate a couple of times over the past months and while another increase would not likely have a significant impact on liquidity, it would again signal the Fed is determined to normalize monetary policy without having to raise the headline federal funds target rate. Third, Fed officials including Chairman Bernanke, Kocherlakota, Dudley, and Hoenig will speak this week and will offer some of their latest views concerning policy. Fourth, major central banks will be releasing their interest rate decisions this week including Bank of Japan, the European Central Bank, Bank of England, and the Reserve Bank of Australia. The central banks' decisions are an interesting study of the varied points the central banks are at in their interest rate cycles with RBA clearly the most hawkish and BoJ the most dovish. Fifth, traders will closely monitor economic data to see if the decent gains reported on Friday regarding U.S. March non-farm payrolls are sustainable and evidence traction in the beleaguered labour market. Data released in the U.S. today saw the March ISM non-manufactur
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[/caption] Here is a section of my 5 min chart that shows the range we are in. Notice that there are several opportunities to get a 5 / 10 / 15 pip trade. If you use the 1 min for entry level, you have a high probability of getting a few pips in profit. ALSO use the 1 min chart for exit as well. You may be premature in getting out but remember, you'll never go broke taking a profit. FXDMG 
[/caption] Here is the same 5 min EUR/USD chart (On the left) and the GBP/USD 1 min chart (Upper right) and the USD/CHF 1 min chart (Bottom right). I use the two right hand charts to confirm that the currencies are tracking properly. This tells me that the EUR/USD is being traded, not manipulated. FXDMG 
[/caption] We have been bottom feeding since the London open and we seem to be range bound for now. REMEMBER the FOMC is out at 18:00 GMT and the market might be soft until then. We may take a few 5/10 pip trades that we will not post as they happen too fast for me to post. If I see anything that may have legs I will post it as well give you what we see in the trading room. FXDMG 
