The dollar continues to lose traction amid the turmoil currently directly related to Japan.

Despite a strong increase in US durable goods orders, discussions about the possibility of the US helping Japan support the yen continue to pressure the US dollar. This leads to the rise of several risk assets, starting with the euro and the British pound, and ending with the Japanese yen. Traders are also closely monitoring geopolitical signals and actions, fearing that intervention in the currency market could destabilize the global economy.

It is worth noting, however, that macroeconomic indicators in the US as a whole demonstrate resilience. Nonetheless, these factors cannot completely offset the uncertainty caused by potential currency intervention and its consequences.

Unfortunately, there are no reports available from the Eurozone today, so all attention will be on the speech of the President of the Bundesbank, Joachim Nagel. The market will likely be listening keenly for hints on the speed and intensity of future interest rate changes, which are clearly not expected anytime soon. Even if Nagel says nothing specific, his overall assessment of the Eurozone's economic condition will matter. Optimistic forecasts regarding growth prospects could strengthen the euro's position.

Regarding the pound, amid the absence of significant economic news from the UK, it has every chance of continuing to rise against the dollar. In recent days, the British pound has performed well, aided by a weak dollar and expectations of a tighter monetary policy from the Bank of England.

If the data aligns with economists' expectations, it's better to act based on the Mean Reversion strategy. If the data turns out to be significantly higher or lower than economists' expectations, the Momentum strategy is the way to go.

Momentum Strategy (Breakout):

For the EUR/USD Pair

Long positions on a breakout of 1.1885 may lead to euro growth towards 1.1910 and 1.1935;

Short positions on a breakout of 1.1870 may lead to a euro decline towards 1.1837 and 1.1800;

For the GBP/USD Pair

Longs on a breakout of 1.3680 may lead to pound growth towards 1.3720 and 1.3773;

Shorts on a breakout of 1.3665 may lead to a pound decline towards 1.3642 and 1.3615;

For the USD/JPY Pair

Longs on a breakout of 154.67 may lead to dollar growth towards 154.95 and 155.30;

Shorts on a breakout of 154.35 may lead to dollar sell-offs towards 154.00 and 153.70;

Mean Reversion Strategy (Retracement):

For the EUR/USD Pair

Shorts will be sought after a failed breakout above 1.1900 on a return below this level;

Longs will be sought after a failed breakout below 1.1862 on a return to this level;

For the GBP/USD Pair

Shorts will be sought after a failed breakout above 1.3705 on a return below this level;

Longs will be sought after a failed breakout below 1.3657 on a return to this level;

For the AUD/USD Pair

Shorts will be sought after a failed breakout above 0.6932 on a return below this level;

Longs will be sought after a failed breakout below 0.6903 on a return to this level;

For the USD/CAD Pair

Shorts will be sought after a failed breakout above 1.3744 on a return below this level;

Longs will be sought after a failed breakout below 1.3715 on a return to this level;