Daily Outlook: Welcome to the end of a great week PipHutters. After the trading setups not being triggered very much for the first couple weeks of the month we've had a flurry of activity here in the past couple days. It's a great example of patience paying off in the end, and a fulfillment of our New Year's resolution here at PipHut to take less, but higher quality, trades for 2011.
Yesterday's analysis called for selling at 1.3500 and buying at 1.3400 and you had the opportunity to both and be in the profit for both. We are flat right now, having closed all positions after the ride down to 1.3400 and then the ride back up to 1.3500.
It is a shame that it is Friday (so we won't be trading), because there are plenty of good looking setups on the chart currently starting with ascending triangle you get by drawing a horizontal line at 1.3520 and connecting the lows of Jan 19th 0:00 and Jan 20 12:00 (4h charts) for the rising support. In ascending triangle is a bullish pattern and indicates further potential upside to the pair. In fact, as this is being written, the pair has jumped to 1.3540. If we see a close above 1.3537 then this could be the breakout of the ascending triangle that would confirm the pattern.
Beyond that setup there is the rising trend support discussed above - buying at this level has yielded pips all week. And finally if we see a reversal on a false breakout here then a breakout below the rising trend support would open up a re-challenge 1.3300.