The pair's bullish trend has been so strong recently that it has been the aggressive trade or nothing at all and yesterday was no exception. The aggressive trade (long at 1.2875 with confirmation) gave us a great inverted hammer at the 6:30 GMT candle that just touched our support level before skyrocketing over 100+ pips in 1h. I know many of you were able to get in on that (those with working internet connections anyway ;).
Daily Outlook: Still bullish until I have a reason not to be. Right now the biggest threat to the pair seems to be too much acceleration (i.e. it can't go straight up forever) though, again, I will continue looking for longs until the charts tell me otherwise. The EUR/USD seems to have de-coupled with risk as the Euro continued to rise despite a multitude of bad Eurozone news in contrast to past news events that have sent the EUR/USD plummeting. Two months ago if a Eurozone country was downgraded by Moody's the pair would have dropped like a rock. Now it hardly flinches.
Longer term I am looking for an opportunity to short around 1.31 for a longer-term trade.
Trading Idea: Primary trade will be conservative, as usual: looking for a long in the vicinity of 1.28 support with targets at 2825, 2855, 2885 and 2915 for 90 pips profit.
More aggressive trade is a long in the 1.2935 support zone with confirmation and targets back up to 1.3015 for 80 pips profit.
The most aggressive trade: there will be plenty of short-scalping opportunities if 1.31 is reached.
Happy pipping all!
(click to enlarge)