The U.S. dollar slightly strengthened against the euro, the pound, and other risk assets; however, this did not prompt any significant technical changes in the market.

The temporary strengthening of the dollar against the euro yesterday in the afternoon can hardly be linked to anything specific. The changes against the pound were even less noticeable. It is evident that the market is waiting for signals from the Federal Reserve on future monetary policy. Traders are also closely monitoring macroeconomic indicators in an attempt to predict how dovish the Fed will be in the near future.

Today, in the first half of the day, data on Germany's trade balance is expected, along with a speech from the President of the Bundesbank, Joachim Nagel. These events will certainly influence the dynamics of the euro and, consequently, the overall balance of power in the currency market. Trade data will provide insight into the state of the German economy, the largest in the eurozone. Stronger-than-expected export figures may strengthen the euro, demonstrating the economy's resilience to external challenges. Conversely, weak data may put pressure on the euro, raising recession concerns.

Joachim Nagel's speech will also attract keen investor attention. His comments on inflation, economic growth prospects, and the European Central Bank's future monetary policy could significantly impact market expectations and, consequently, the euro exchange rate. Additionally, other factors affecting the currency market, such as geopolitical situations, risks, and investor sentiment, should also be considered.

Regarding the pound, parliamentary hearings on the Bank of England's monetary policy report will occur today in the first half of the day. This event will undoubtedly be crucial in determining the future trajectory of the pound sterling and the UK's overall economic situation. Investors and analysts will closely monitor the speeches of BoE representatives, seeking hints on future monetary policy directions. Special attention will be given to inflation issues. Despite certain successes in curbing price growth, inflation in the UK remains significantly above the target level.

If the data aligns with economists' expectations, it is advisable to act based on the Mean Reversion strategy. If the data turns out to be significantly above or below economists' expectations, it is best to use the Momentum strategy.

Momentum Strategy (Breakout):

For the EUR/USD Pair:

• Buy on a breakout of 1.1650, targeting a rise to 1.1688 and 1.1705.
• Sell on a breakout of 1.1635, targeting a drop to 1.1615 and 1.1590.

For the GBP/USD Pair:

• Buy on a breakout of 1.3340, targeting a rise to 1.3380 and 1.3400.
• Sell on a breakout of 1.3310, targeting a drop to 1.3270 and 1.3230.

For the USD/JPY Pair:

• Buy on a breakout of 156.15, targeting a rise to 156.55 and 156.95.
• Sell on a breakout of 155.90, targeting a drop to 155.70 and 155.40.

Mean Reversion Strategy (Return):

For the EUR/USD Pair:

• Look for short positions after a failed breakout above 1.1656 on a return below this level.
• Look for long positions after a failed breakout above 1.1633 on a return to this level.

For the GBP/USD Pair:

• Look for shorts after a failed breakout above 1.3340 on a return below this level.
• Look for longs after a failed breakout above 1.3318 on a return to this level.

For the AUD/USD Pair:

• Look for shorts after a failed breakout above 0.6659 on a return below this level.
• Look for longs after a failed breakout above 0.6632 on a return to this level.

For the USD/CAD Pair:

• Look for shorts after a failed breakout above 1.3858 on a return below this level.
• Look for longs after a failed breakout above 1.3836 on a return to this level.