Daily Outlook: Got the dip just where we wanted yesterday around 3620, good for 100+ pips, and now we're looking to reload under 3650 as we look for bears to continue their recent aggressiveness.
It was a pretty quiet day yesterday, not sure if we had a bit of a SuperBowl lag in the markets or just a case of the Mondays, but the pair was volatile enough to offer several trades and established a new low on the 1h timeframe charts. Since then bulls have taken over, almost forming a hammer on the daily charts and pushing the pair up to threaten 3650 (former resistance from Feb 3rd and 4th). We see 3650 as a key resistance level and will remain bearish below and bullish above.
Trading Idea: We do have an EU short established around current levels (3630) with targets at 3605, 3580, 3550 and 3520 for 110 pips profit.
If 3650 is broken to the upside then a more aggressive secondary trade would be a long above 3660 with targets up to 3770 for a total of 110 pips profit.
Happy Pipping all, and don't forget to read the CandlePRO: Backtesting Announcement here