Daily Outlook: The rally from rising trend support was short lived though as it stalled out around 1.2390 and is currently close to threatening the support again (bottom orange line on chart). If I was trading this Friday (which I am not) I would be looking for opportunities to sell as the possiblity of a downtrend resumption is increasing in probability with each day that passes. Risk aversion is creeping back into the markets with each piece of bad news that comes out - regardless of which country's economy is tanking - and if risk aversion sinks in again it will inevitably lead to a rise in the USD and a drop in the EURUSD.
Trading Idea: If I was trading today I would be looking for short opportunities, primarily int he 1.2415-1.2450 vicinity. I see the failure of the pair to reach these levels yesterday as a positive for the bear trade as it could be an indication that the bulls are losing steam. Short targets from 1.2450 are 1.2415, 1.2385, 1.2355 and 1.2325 for 125 pips profit. A more aggressive trade would be a short on a bearish break of the rising trend support (currently at 1.2265) with targets down to 1.2175 for 90 pips profit.
Happy pipping and have a great weekend everyone!