2:14a GMT - Yesterday's secondary trade (sell a break of 1.4830) played out well as the pair dropped steadily and hit both targets for 125 pips. It's been a great week of signals/trading altogether as the bearish drops have been have been fairly easy and consistent to sell. The pair has now dropped almost 1000 pips in the past couple weeks - R.I.P to those traders trying to pick bottoms all the way down ;).
Daily Outlook: Still bearish as once again we had a significant bearish break to the downside though I will continue to be more conservative going into the weekend as Friday's can produce bigger whipsaws and I don't like to hold trades open over the weekend as anything can happen. Therefore I will look for shorts in the area of the 61.8% fibonacci retracement of Feb 3 - Feb 4 high/low. We also have a falling trend resistance in that area giving further weight to the area.
Trading Idea: Conservative trade is in the 1.3900 area with targets at 1.3860, 1.3830 1.3790 and 1.3760. If this wasn't friday I would probably take a less conservative approach and look to sell at 1.3850 resistance area - which I still could if there is enough time left in the trading day and the signal is strong enough. If we see any consolidation during the day a secondary trade would be to sell the consolidation support break.