Daily Outlook: Technically we are still in a strong downtrend capped off by two falling trend resistance lines on the 4h and daily charts (top two blue lines on chart). We also just broke the rising 1h trend support which had been our first bullish short-term trend in days now. Technically as long as 1.2500 holds in the short-term I will remain bearish on the pair and continue to look for selling opportunities.
A few more news events on the calendar for today but nothing too significant. Check out the forex calendar here for full details. A heads-up too that 4h candlesticks on the GMT charts have been pretty reliable as of late. I circled a few on my chart today for you to view. As always you can view 1h and 30m candlesticks at the Candlestick Alert System.
Trading Idea: My primary trade opportunity will be a short around 1.2450, with confirmation or a failed break above, and short targets at 1.2410, 1.2385, 1.2355, 1.2325 and 1.2300 for 150 pips profit. If 1.2450 is broken to the upside look for a re-challenge of 1.2520 (I will not take a long here) and then I will look for my secondary trade which is short in the area of 1.2520.
A more aggressive trade would be a short on a sustained break of 1.2300 with targets down to 1.2275, 1.2250 and 1.2215.
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