Political developments in Italy continue to weigh on EUR/USD, but investors may turn their focus to Eurozone inflation data. Our economists estimate a strong rebound in Eurozone HICP, which should support EUR recovery in the near term.

The Bank of Canada is likely to keep rates on hold today. We think that any upward moves should be used as fresh opportunities to get USD/CAD short.

This is how MyFXspot.com trades today:

EUR/USD

Trading strategy: Long

Open: 1.1600

Target: 1.1780

Stop-loss: 1.1510

Recommended size: 1.67 mini lots per $10,000 in your account

Short analysis: We expect strong rebound in Eurozone inflation tomorrow. Today's recovery may signal a stronger upward move in the near term. We opened long at 1.1600, target 1.1780.

GBP/USD

Trading strategy: Await signal

Open: -

Target: -

Stop-loss: -

Recommended size: -

Short analysis: The GBP/USD failed to break below 1.3209 support level and we see a recovery action today. Signals are mixed and we stay sideways.

USD/JPY

Trading strategy: Short

Open: 109.50

Target: 107.90

Stop-loss: 109.40 (lowered from 110.30)

Recommended size: 2.50 mini lots per $10,000 in your account

Short analysis: The USD/JPY broke blow 108.96 support yesterday but we do not see a continuation of bearish move today. We have locked in small profit on our short position at 109.40.

USD/CAD

Trading strategy: Sell

Open: 1.3080

Target: -

Stop-loss: 1.3210

Recommended size: 1.50 mini lots per $10,000 in your account

Short analysis: The Bank of Canada is expected to hold their benchmark overnight rate steady at 1.25% today, choosing to wait until July, at the earliest, to begin tightening again. We think that any upward move should be used as a fresh opportunity to get USD/CAD short. We have placed a sell order at 1.3080.                                                                                                                     

AUD/USD

Trading strategy: Long

Open: 0.7555

Target: 0.7800

Stop-loss: 0.7420

Recommended size: 1.48 mini lots per $10,000 in your account

Short analysis: The AUD/USD rebounded from the near-term trendline, which keeps our bullish strategy in play.

EUR/GBP

Trading strategy: Long

Open: 0.8780

Target: 0.8960

Stop-loss: 0.8690

Recommended size: 1.22 mini lots per $10,000 in your account

Short analysis: Our long position remains under pressure, but today's recovery gives us some hope. A close above 0.8730/35 would be a good sign.