Daily Outlook: Technically nothing jumps out at me signaling that the downtrend is weakening - we have a solid downtrend resistance capping last week's action and a long series of lower lows and lower highs. All of these are signs of a strong downtrend. Some traders might feel hesitant looking at various indicators showing oversold but remember that oscillators are not useful in a strong trending environment like we have now. In light of this strong trend I will continue to sell into rallies, looking at fibonacci retracments at 1.3680 and 1.3750 initially.
Trading Idea: Looking to sell near resistance levels (1.3680 and 1.3750). Targets from 1.3750 are 1.3720, 1.3680, 1.3645 and 1.3600.
As a reminder to everyone forex is a risky business - never risk more than you can afford to lose.
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