Daily Outlook: Bears have had all the momentum the past few days, pushing the pair down over 250 pips - and we have been selling the whole way down :). Right now the pair is in a short term bearish channel on the 60m and 30m charts. On the daily charts the pair is still underneath the falling trend resistance from Dec 3 2009 and March 17 2010.
So I am looking for opportunities to short on the day, but be aware that it is a big news day! We have the the Euro interest rate decision (12:45 GMT), ECB press conference (13:30 GMT) and USD initial jobless claims (13:30 GMT). Those are the big ones but there are a plethera of other announcements throughout the day. View the Forex Calendar here for more details and complete list.
Trading Idea: For my primary trade I will look for a short opportunity in the 1.3375-1.3400 resistance zone, with short targets (from 1.3400) at 1.3375, 1.3345, 1.3315 and 1.3290. For secondary trades I will continue my consolidation breakout strategy where I look for a support level and then sell a break of that level, and I will also look for candlestick signals near falling trend resistance levels.