Daily Outlook: To recap I'm bearish long-term, but we are in a short-term bullish correction right now so I will continue to look for opportunities to long the pair until a valid technical signal appears on the daily charts.
On the short-term charts we are caught in a bullish channel within a bullish channel (see thin blue line between two thick blue lines). The 23.6% retracement of the larger fall from December of 2009 was just broken on the daily chart yesterday, and on top of all of that the bullish channel we are in currently appears to be a bullish consolidation pattern as well. All signs point north.
Candlesticks from the candlestick alert system have been extremely profitable on both the 1h and 30m for the past couple days - they can make a supplement to your strategy.
Trading Idea: Primary trade is a long, again, near the rising trend support currently at 1.2600 (thin blue line). Long targets from 1.2600 are 1.2625, 1.2655, 1.2685 and 1.2715 for 115 pips profit.
A secondary more conservative trade would be a long off the bottom support (thick blue line) currently at 1.2550 with targets up to 1.2685 for 135 pips profit.
A more aggressive trade would be to go long on a upside break of our bullish consolidation pattern (breaks above the rising resistance - top blue line) as this could be the move to go further north before finally turning back down. If that top line is broken watch for a re-challenge of 1.2770-1.2800 to close the week.
Finally the most aggressive trade would be along on a failure of 1.2635-2650 targeting the top of the channel 1.27-1.2715.
As always use proper money management, never trade with money you can't afford to lose and happy pipping. Have a great weekend PipHutters!