Daily Outlook: We've been getting our fair share of pips this week, both from the EUR/USD and from the other pairs in PRO analysis. Bulls shifted gears yesterday, bouncing hard above 1.3600 (kicking up some nice bullish entries, btw) before skyrocketing above 1.3680 and triggering the aggressive long. That was good for up to 60 pips (depending on where your targets were, etc) and the pair is once again falling downward to 1.3680 support.
This leaves us with our favorite type of setup (well, maybe second favorite after a nice triangular consolidation pattern on the daily charts) - a clear rising trend line with at least two touches. We say it is one of our favorites because it makes the technical analysis easy and clear: bullish above and bearish below. The bulls have also managed to pull out some higher highs and higher lows recently, adding to the evidence that they may actually be able to sustain this rally this time. But if they don't, no matter - we will stop and reverse below. Remember: if you are a technical trader than let the charts tell you which direction to trade. Don't overcomplicate it.
Speaking of overcomplicating the markets, Bernanke yesterday said... nevermind. We can't think of the last time Bernanke said anything of any real value or impact and this time was no different. Which we suspect is his goal - to appear as neutral as possible to not disturb the markets. Which, honestly, makes us a little nervous. If he is looking at all the data and sees things as so fragile that the slightest tip might send the whole boat over isn't that a little unnerving. Your thoughts?
Trading Idea: Primary trade is a long as around the 1.3660-1.3680 support zone, with candelstick confirmation, and targets at 1.3690, 3715, 3745 and 3770 for up to 110 pips profit.
Secondary trade is a stop and reverse below rising trend support on a breakout with targets at 1.3640, 3610, 3580 and 3550 for up to 110 pips profit.