Daily Outlook: Bulls have put on the afterburners in the past couple hours, pushing the pair up 120 pips in just 2 hours. Since we didn't trade this pair last Friday we'll jump right into the signal and analysis:
The pair has continued to skip along the various support levels that we tracked for most of last week, making large rallies, then consolidating, then a large rally, then consolidating, etc. This last rally is the most aggressive we have seen in a few days and with the pair approaching 1.3600 resistance we will begin to look for shorts on signs of an extinction candle (for example: a long wick on top of a shooting star) to get short on. We also acknowledge that bulls appear to be in the driver's seat at the moment so we will continue to look for longs near blue support levels until those levels are broken.
Trading Idea: Our primary trade today is fairly aggressive - short near1.3600 with a good extinction candle (e.g. a nice long wick on a shooting star) for confirmation and targets at 3575, 3550, 3520 and 3490 for 110 pips potential.
With the short-term trend showing bulls in control we will also continue to look for longs near the blue support levels - the most conservative of which is currently down around 1.3400 (nearly 160 pips away) but we will nonetheless look to get long there if the drop does occur with targets at 3425, 3455, 3485 and 3515 for 115 pips potential.
Happy pipping and don't forget to answer today's poll question (pretty easy one today):