Recap: Bull confidence has fizzled out in recent days and that was evident yesterday as the EUR/USD drifted about for much of the European session. I finally got a chance to short on the sustained break of 1.2280 (see final trading idea from yesterday) and took a single lot short at 1.2290 with a SL about 60 pips up. I have another short entry at 1.2315 (for a possible pull back) but that has not been reached.
Daily Outlook: Risk aversion appears to be back in the mix as oil is dropping, the Nikkei is tumbling and DOW futures are in the red. Technically the pair just fell through its rising trend support (bottom blue line on my chart) and the pair is coming off fresh lower lows and lower highs - all bearish signs.
Light news today. Check the forex calendar for full details. Also, remember to check the candlestick alert systems for 30m and 60m candles for your own secondary trades.
From here next good support is at 1.2200 and good resistance is at 1.2315.
Trading Idea: I will keep my short from 2290 open, but my primary trade for the day will be to sell at 1.2315 - a pullback to the former rising trend support and now resistance. Short targets from 1.2315 at 1.2290, 1.2260, 1.2230 and 1.2200 for 115 pips profit.
A much more conservative trade would be a short from falling intraday trend resistance now at 1.2380. I doubt it will reach this level today but you could get some fantastic risk/reward ratios on this strong daily resistance. Happy pipping :)