4:14a GMT - I don't know about you all, but I for one am really looking forward to a few extra days of no trading this week! Holidays can be a good thing. We did in fact see a nice drop yesterday to go with my bearish signal - keeping with my conservative holiday gameplan though I did not enter as resistance held at 1.4330 and the pair dropped over 100 pips to the low 1.4200 range. Housing data came in better than expected for the US with home sales continuing to improve, but remember that this is also because many first time home buyers in the US rushed to purchase a house last quarter to take advantage of the expiring home tax credit. That doesn't really tell us the interest rate will be raised soon - it tells us the government might stop printing money at some point.
Daily Outlook: Bearish downtrend remains strong. Markets will be at their thinnest during the US trading session. Unless you are very confident in your trading ability I recommend taking the day off and catching some early holiday spirit! For those of you feeling aggressive... I'm bearish under 1.4330 in the short-term. We have a sinking trendline that has held for the week now and until we see a good rise in their pair the bearish outlook will continue.
Trading Idea: Looking for bearish signals around 1.4330 with targets at 1.4300, 1.4275, 1.4245 and 1.4220.
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