5:32a GMT - I took a small loss on yesterday's secondary trade (short around 1.3650) - I trailed the stop loss down when the pair started dropping so losses were minimal. The primary trade never produced a sell signal on the 1h chart so no trade was taken there. I know some people did profit off the initial drop from 1.3680 but for the rest of us that is why you always use a stop loss. By the way a ‘wrapper' trade is just another term for a breakout trade where you prepare to sell a downside break and buy an upside break :).

Daily Outlook: On the day the pair rose an impressive 150 pips and while I am still bearish on the pair in the medium term we have a bullish flag pattern forming currently. We have a nice 150 pip flagpole with a rising consolidation pattern (a very bullish signal). My preference would be to sell a false breakout of this consolidation pattern as I don't think the bulls will be able to hold this rally, but remember for a false breakout the pair has to return to the downside after an upward thrust.

Trading Idea: It is a cautious day, signals are mixed, but my preferred trade is to short a false breakout of the pair around 1.3760 (after an upward thrust) - short targets at 1.3715, 1.3685 and 1.3655. Secondary trade would be a long on a sustained break of 1.3785 targeting a re-challenge of 1.3850.

(click to enlarge)

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Source: Forex Signals - EUR/USD Bullish Flag Formation
Forex signals from: PipHut.com