1) most importantly it was with the trend (bullish)
2) it had the bullish hammer confirmation
3) the pair was in a flag consolidation pattern on the 1h and 4h charts after the large flag pole up yesterday so even if the trade didn't hit my ultimate TP I felt confident it would at least return to the top of the flag around 1.2730
4) the long wick went through the bottom of the support at 1.2700 but did NOT close below it (meaning false breakout)
5) it offered a good 30/60 risk/reward ratio with the 30 allowing the stop to be below the tip of the hammer's wick
The result was 60+ pips. Not my best trade from a profit perspective, but it offered a reasonably good chance of success and was worth the risk.
Daily Outlook: Bulls continue to grind this pair higher, forming yet another higher high and higher low on the daily charts. The bullish range (see chart below between top blue line and bottom orange line) us still well intact but the pair has been flirting with its rising channel resistance for days now. I feel a bit uncomfortable buying this close to resistance but I will look to capitalize on a drop to the halfway point of the range around 1.2570-1.2600 if it happens. Be cautious today, though as their is plenty event risk on the forex calendar and as always watch the candlestick alerts for intraday trading signals - candlesticks are what sparked my trade today and quite honestly spark or confirm a high percentage of my trades.
Trading Idea: Primary trade is a long with confirmation on a dip to the channel center, currently between 2570-2600 support zone. Long targets from 2600 are 1.2625, 1.2655, 1.2685 and 1.2715 for 145 pips profit. If news is especially bad tomorrow and we see the pair crash through center support I will look for the more conservative long from the channel bottom around 1.2390 but I doubt we will see those levels tomorrow. Finally the most aggressive trade would be a long in the area of 1.2690 either scalping the range or with targets back up to 1.2750 for 60 pips.