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Recap: An ideal trade yesterday in the sense that the pair went right up under our resistance at 1.2080 (price went to 2073) and then dropped like a rock all the way down to our final TP at 1.1960 for about 100 pips depending on where you entered.
We had a bit of luck on our side with the exit though the pair only dropped to 1.1956 before bouncing back to our current level under 1.2050.
Daily Outlook: Medium term, long-term trends are still very bearish - in fact anything with Euro is bearish - but the short term trend is getting a bit mixed. The pair has maintained above its rising trend support (bottom blue line) and has established higher highs and higher lows every day this week so far ever since the bullish doji on the daily charts on June 7th.
With the intersection of the falling and rising trends (bottom blue lines) we do have another triangle consolidation pattern on the charts which I will look to sell near the top of.
Trading Idea: Primary trade is a short near the top of the triangle, currently between 1.2080-1.2120 with targets (from 1.2110) at 1.2085, 1.2055, 1.2025, 1.20 and 1.1975 for 135 pips profit. Ultimately I expect 1.2150 to cap any breaks to the upside and ideally I will hide my stop behind this level.
A much, much more agressive trade would be a long near the bottom of the triangle, currently at 1.1970, targeting the resistance at 1.2080 for 110 pips profit.