After todays Eurozone flash CPI Core CPI missed estimates at -0.2% and 0.7% respectively the Euro remained under pressure. This is likely to remain the case until the next ECB policy meeting on March 10th 2016 especially with the positive PCE reading last Friday from the US.
Support is found around the 1.0600 region. Stop loss is placed above today's high and just under 1 x ATR.
Tomorrow we have a speech from FOMC member Dudley along with ISM Manufacturing PMI expected to come in at 48.5 and above the last reading of 48.2. On Friday we have the NFP release expected at 195k with unemployment rate expected to stay below 5% at 4.9%.
Poor data from the US is the main risk for this trade. I think we would need big deviations to the downside to knock this trade off tracks.