The economic data released this afternoon sent the markets whipsawing on a roller coaster ride between support and resistance, but the end, the markets settled to pre-data release levels. We will continue to work EUR/USD buy orders into the Asian open tonight to see if we can pin down a high probability entry point against significant technical support for the ride up to that monster 1.2900 level.

I look to get long on a push down to channel support at 1.2750 with stops below 1.2725. I have a strong feeling that those 50 bids will be done tonight and if stopped at 25, I won't be afraid to use that 1.2750 breakdown point as a re-entry to get short against former channel support turned resistance. The failure this afternoon after the data release was fairly significant, but we must respect the current dollar downtrend until proven otherwise, and that channel break down to 1.2725-00 is proof enough for me.

Todd Gordon is a Technical Currency Strategist and Fund Trader with GAIN Capital Group.

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