[ForexNews]

Trading Strategy — Giving back gains: The Euro began the week weaker against the USD. Over the last week we've watched the Euro trade from 1.3400 to 1.2970 on concerns over the region’s growth prospects. The AUD also gave back much of its gains against on the USD from a rally that some consider as being over extended and overbought. Within the last week, the AUD peaked around 0.7279 as the possibility of a quick global recovery and strong commodities demand seemed likely. This morning, the AUD is trading around 0.7050. The Pound also lost steam against the USD trading from 1.50 to 1.4560 over the last week. With the exception of USDYEN, the USD price action has mostly been one-directional—stronger! We're also nearing the peak of earnings season this week with 61% of the S&P set to report. So far earnings amongst finance, tech, and hospitality companies have been better than expected. The key question will be whether the rest of the pack can follow suit. The outcome will help us know if this rally has legs