Spanish Budget, 2 words that go together kind of awkwardly these days

Hi
Those that waited for the pull back yesterday will have been rewarded with at least a small winner, and some may still have a percentage of their trade in the market.  Its okay to hold that position as long as price stays below 1.2895.

Context
The market is now watching Greece and Spain to see how their financial situations will play out. The Spanish budget is today and comes amid rumours of a receding economy, social unrest and rising borrowing costs. The formal request for a bailout does look inevitable. Meanwhile a national strike in Greece serves as a poignant reminder for the Spanish of what the conditions of such bail outs can do to your country. Shambles is the only word that comes to mind and downward pressure stays on the Euro. The slight danger today is price bouncing around during the budget, or some market stunning, unexpected announcement in the budget pushing the Euro up.

Technical Analysis
Daily pivot has moved down again and starting to approach over extension type levels at 1500 pips apart. While the set up is bearish the over extension should hold a brake to any move down. That said the fundamental stuff could test that.
Price has just high tested off the 100 ema on the 30 minute chart as it it did two days ago, and its another solid bearish indication.
The 4H chart remains bearish, but he test current test bar is a little short of both support and trendline, and does suggest we have room for a push up to a at least one of them .

The Day Ahead –  
Things could stay very choppy in the build up to and during the Spanish budget. Anything is dangerous when it’s as choppy as this. I am waiting to a break of Daily pivot, once I have price below DP I can again take longs off the table today as the breaking of DP, 1.2895. 1.2908 and the channel will take some major event. At that stage I can trade short, and watch the Spanish budget.
Bias- My overall bias is still short, but the market is still pretty mixed at the moment.
 NO TRADE: I’m not going long today without a break of the descending channel at about 1.2925.
BEST Short entry: Once we get under DP, I will be looking for a pulback and an entry still under DP.

BEST Long Entry.. I will stay out of the longs unless we see a break of the descending channels and a test from above..
Other entries..

RED NEWS
Tentative     EUR    Italian 10-y Bond Auction
1:30pm    USD    Core Durable Goods Orders m/m
1:30pm    USD     Unemployment Claims378K
3:00pm     USD     Pending Home Sales m/m

All the best
PBT