Daily Outlook: Yesterday the world stocks plunged, US stocks plunged and the Euro plunged - good news for us short traders. Investor fear spread as Greece worries grew despite the bailout plan on worries that Portugal, Spain and eventually even France could have the same debt problems.
Technically it would be hard to be more bearish right now. We have bearish channels within bearish channels on top of strong bearish breaks of other bearish channels :). My only real concern with the short trade is that with such strong downward movement we could be facing a retracement today or Thursday.
Trading Idea: To avoid the retracment my primary trade will be a short at either 1.3050 and 1.3100. From 1.3100 targets are 1.3070, 1.3045, 1.3015 and 1.2990 for 110 pips profit. The next major support is around 1.2880 which could provide our bounce, but I much prefer looking for reasons to short on the day.
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