Key economic data-

EUR- Germany factory orders, French industrial production.

USD- Federal Chairwoman Yellen Testifies.

Forecast-

EUR- Traders will eye today's important key industrial production data for German and France. We expect the German industrial production to increase slightly in March to 0.3% MoM. The French industrial production should remain stable in March.

USD- Yellen’s appearance before the Joint Economic Committee will be the highlight of the post jobs report slate of economic data. She’ll also go before the Senate Budget Committee on Thursday. The market participants actively discuss when the Fed will start lifting interest rates, and how high the rates will go once it starts happening.

Technical view-

The pair has been trading in an up move from 1.3774 levels. The 50SMA level in the daily chart has been supporting the pair to move to higher levels. Whenever the pair comes to 1.39-1.3950 levels, it will face selling pressure. In yesterday's trading session the pair truncated the lower highs pattern, witnessing some more upside leg possibility. But in the daily chart, the Stochastics is giving a sell signal, expecting the pair to pause its uptrend, and it will correct up to 1.3865 and 1.3850 levels. On the upside, until the pair trades above 1.40 levels, we are recommending the sell on rise strategy.

In Asia's trading session, the pair is trading at 1.3934 levels. In the H4 chart, the pair has strong support in 1.3925-1.3920. The pair is trading in a range bound between 1.3920-1.3935 levels. The pair will become weak if it breaks the 1.3920 levels, until the pair holds this level, it can make another high at 1.3965, 1.40 and 1.4011 levels. On the down side, if the pair breaks the 1.3920 level, the immediate support comes between 1.3906-1.3890 levels. The major weakness comes below 1.3890, up to 1.3873, 1.386 and 1.3824 levels.

We expect the pair will face selling pressure at any time. Safe traders can wait for a dip. Risky traders can enter shorts on every rise.

Recommendations- cmp 1.3934.

Buy above 1.3935 with targets 1.3950, 1.3965 and 1.40.

Sell below 1.3920 for targets 1.39, 1.3890, 1.3873, 1.386 and 1.3824.