5:08a GMT - Another week down, another Friday ahead of us.
Yesterday was pretty volatile at times, moving 120+ pips in 2 hours alone. I took two trades - the first one off of the initial challenge of the (former) rising trend support, now resistance on the 15:00 gmt candle. This quickly yielded 50 pips. The initial challenge of that type of SR is always the most fruitful in my experience. My second trade is actually still open - a short on the 4:00a GMT shooting star candle (see candlestick alerts) in the resistance zone of 1.3550-1.3580 from my primary trade signal yesterday. That trade has not moved much since its open.
Daily Outlook: Once again it is a Friday and, of course, we have some mixed signals (anyone see a pattern here?). I've gotten a few questions about are we in a double bottom situation and the answer is - it is too early to tell. To satisfy me we would need a sustained break above 1.3800 before I would take a double bottom scenario seriously. Remember, confirmation on the charts is necessary to risk equity on - otherwise its nothing more than a coin flip. Our strong falling trend resistance is still holding the pair down and as long as that holds I am bearish in the short term.
Trading Idea: It is Friday and signals are mixed so I will be very conservative with my trade plan for the day. For those looking to re-enter the market the first place I will look is on the falling trend resistance, currently at 1.3620, with short targets at 1.3585, 1.3550 and 1.3520. It would have to be a very good signal however for me to double on my current short as I don't want to go into the weekend heavy, so a more conservative (and less likely to be tripped) entry points would be resistance at 1.3650 and 1.3700.