7:14a GMT - Welcome back for another great week of trading! Signal is out a little later than usual this morning - I was working on something to do with the candlestick article (which will be out later today if all goes well). Quick recap of Friday's signals the trend was indeed down and there were some good selling signals that yielded good pips if you were looking for them. Those sitting on entries around 1.4950 never got them tripped, unfortunately.
Daily Outlook: A lot of action already this morning! We have seen the EUR/USD rise over 130 pips to the top of the short-term bearish channel (shown on the daily chart below). I've posted a daily chart below so we could take a step back and look at the overall trend. We have been caught in a bearish channel for the past couple weeks but you can clearly see that the long-term trend is to the upside. Because this is a bit of a tricky situation it will call for extra-careful trading.
Trading Idea: As long as the pair remains under bearish resistance I remain short-term bearish and will look to sell for a compelling candlestick signal / failure of 1.4990. It will require a confirmation signal. Those short targets at 1.4955, 1.4915 and 1.4880. If 1.5000 has a sustained break, however, I will switch to buying on dips around 1.4950 for a re-challenge of 1.5050.
P.S. you might notice a few changes/additions to the site today such as the Forex Market Hours under Tools and new forums. I'll be sending out an email later to go over these changes and a few more :).