In contrast to last week, there is an abundance of high impact data out this week specifically for foreign exchange traders. Most noticeably will be the European Central Bank press conference. The European Central Bank have already threatened to take action to hold down the EURUSD. However they are renowned for surprising the market and may even go back against their initial warnings as the market has fallen strongly since they last spoke.
However it is more likely that they will do something and if Quantitative Easing is confirmed then this is going to cause some heavy weakness on the EURO and cross pairs as essentially printing EURO’s will cause the currency to weaken as supply outweighs demand. If this is the case then be armed and ready to take advantage of this. If any other action is taken, await for the market to provide clues on what it wants to do before entering any forex trades which involve the EUR.