MeetPips.com

Sometimes it hurts to be right. I took a small loss of just 9 pips on yesterday's bounce off of resistance trade and in my trade analysis I had mentioned that I believed the bulls would rally further before we'd see a true sell-off and profit taking. I mentioned that this was why I hadn't yet moved my S/L to break even though at the time the trade initially went into profit by about 15 pips. Turns out that was exactly what happened, as 1.3761 was as low as this pair could go before buying interest picked back up again.It now looks like selling pressure has returned with a vengeance, spurred on by the unemployment numbers out of the UK which surprised everyone and led to massive selling of EUR/GBP. Merkel’s comments probably played a little part there as well. German Chancellor Angela Merkel said that "The euro is facing the strongest challenge it has ever had to cope with," Merkel told the Bundestag lower house of parliament. "The (solution) ... can only be one we find with regard to the long-term stability of the euro.In the U.S. we saw PPI fall to 0.6%, ex-food and energy up +0.1% Most of the drop was in energy costs , which will more than likely rebound in next month’s data. Nothing else too exciting to mention today.EUR/USD continues to slip on profit-taking, down now to the 1.3740 area. Be careful before jumping on board though as I am told there are bids in the 1.3720/30 area near-term. Although a crossover has occurred on the 15 minute chart, I will wait and see what happens on the hourly with our alligator. We are dangerously close to the upward trendline that has so far held up to the selling pressure from earlier in the week, and that might be where the 1.3720 bids come into play as price action inches its way down.Look for big news out of the U.S. tomorrow with Core PPI, Unemployment claims, and Philly Fed Manufacturing index all out. Good luck to you all!