With the opening of Tuesday, after the U.S. holiday on Monday, pressure on risk assets—including the euro, pound sterling, and Japanese yen—quickly returned.

Yesterday's holiday in the United States affected trading volume, limiting the upside potential of many assets against the dollar. The absence of American traders, who are typically key players in the currency market, led to reduced liquidity and, consequently, restrained movement of currency pairs.

Today, we are expecting data on the eurozone Consumer Price Index (CPI) and the core CPI, as well as a speech from Bundesbank President Joachim Nagel later in the day.

These events will certainly influence trader sentiment and may lead to volatility in the currency markets. Many market participants are closely watching the CPI data to assess the current state of inflation in the region. Higher-than-expected readings could prompt the European Central Bank to entirely end its loose monetary policy, potentially strengthening the euro.

Joachim Nagel's speech is also of great interest. Markets will be looking for hints regarding the ECB's future policy and its assessment of the current economic situation. His views on inflation, economic growth, and interest rate prospects could trigger significant market movements.

Unfortunately, there are no significant statistics from the UK today, so the further direction of the GBP/USD pair will be determined more by technical factors. Market participants should pay attention to the key support and resistance levels formed over recent trading sessions. A breakout of these levels may signal further movement in the corresponding direction. In the absence of macroeconomic data, short-term speculative moves are likely to prevail.

If the data aligns with economists' expectations, it is advisable to act based on a Mean Reversion strategy. If the data is much higher or lower than expected, it is best to use a Momentum strategy.

Momentum Strategy (Breakout):

EUR/USD

• Buying on a breakout above 1.1710 could lead to a rise in the euro towards 1.1740 and 1.1780
• Selling on a breakout below 1.1685 could lead to a decline in the euro towards 1.1650 and 1.1620

GBP/USD

• Buying on a breakout above 1.3535 could lead to a rise in the pound towards 1.3560 and 1.3590
• Selling on a breakout below 1.3510 could lead to a decline in the pound towards 1.3470 and 1.3447

USD/JPY

• Buying on a breakout above 147.90 could lead to a rise in the dollar towards 148.20 and 148.50
• Selling on a breakout below 147.60 could lead to a decline in the dollar towards 147.20 and 146.85

Mean Reversion Strategy (Pullbacks):

EUR/USD

• I will look for selling opportunities after a failed breakout above 1.1719 and a move back below this level
• I will look for buying opportunities after a failed breakout below 1.1681 and a return above this level

GBP/USD

• I will look for selling opportunities after a failed breakout above 1.3550 and a move back below this level
• I will look for buying opportunities after a failed breakout below 1.3512 and a return above this level

AUD/USD

• I will look for selling opportunities after a failed breakout above 0.6564 and a move back below this level
• I will look for buying opportunities after a failed breakout below 0.6531 and a return above this level

USD/CAD

• I will look for selling opportunities after a failed breakout above 1.3763 and a move back below this level
• I will look for buying opportunities after a failed breakout below 1.3740 and a return above this level