5:34a GMT - Strong bearish trend continued, in line with last week's analysis. Last week I looked for and opened shorts every day of the week and almost all of them were profitable given the strong bearish movements. The US dollar reached 6-month highs on Friday alongside fundamental news that the US economy had grown much faster than expected (via the GDP numbers) and consumer confidence had been corrected higher. The key will be if this economic growth can continue as government spending programs wind down.
Daily Outlook: The pair is currently capped by three trend resistance lines, two obvious on the 60m chart and all evident on the 4-hour. As long as these first two resistance zone that you can see on the 60m charts (blue trend lines on chart below) hold I am bearish on the day. Trend is extremely bearish and the only major threat is that we are overdue for a correction on these timeframes.
Trading Idea: Right around the first trend resistance at 1.3930 we have the 23.6% retracement of the recent drop and I will look to sell in this area. Short targets at 1.3900, 1.3870 and 1.3840. I will also consider shorts in other areas as long as upper trend resistance is not broken as trend is strong.