4:49a GMT - What happens when you put too much weight on thin ice? You break through it, a situation we saw yesterday as the markets attempted a huge rally on thin volume. They did succeed in that a new high was made and 1.5050 resistance was finally cracked however yesterday, when US banks were closed, that rally came crashing down and is currently sitting around 1.4915 support.
Daily Outlook: With big market moves we need bigger timeframes to more accurately gauge the strength of the rally. On the daily chart below we can clearly see that the bullish trend that has existed all year round is fully intact, if not stronger than ever because we just had a new high being made (which is a new high for 2009). Going into Friday I will be looking to buy on dips toward the bottom of this channel. I will be a bit conservative and give the pair some room to swing as I expect markets to still be a bit thin today.
Trading Idea: Looking to buy dips to 1.4870-1.4850 support area. Looking for a failure to buy or candlestick signal to confirm. Targets at 1.4910, 1.4950 and 1.4980.
By the way great conversation yesterday. I always love to see your own trading ideas, discussion and application of the PipHut methods. PipHut is all about you guys, the PipHut community :).