I stayed flat yesterday as price action and candlesticks did not present any good trading opportunities as this recent downtrend seemed to stall out a bit. US New Home Sales were so horrible I think even safe-haven investors who normally flock to the USD in times of risk-aversion were weary of putting more money into US Dollars.
Regardless the downtrend has lost some short-term momentum leaving tomorrow's outlook a bit murky. I'm still looking for a longer-term resumption of the downtrend but whether that will come tomorrow or next week only the charts can tell us. For tomorrow I will look for a relatively conservative short for a primary trade (i.e. likely to not get triggered) while giving weight to short term bullish candles for small opportunities.
As always check CandlePro intraday trading opps on all pairs, and watch out for news events on the forex calendar.
Trading Idea: Primary trade is probably best described as stand aside, but I will look for a conservative short around 1.2800 until the short-term technicals sharpen up a bit. From 1.2800 short targets are 1.2775, 1.2745, 1.2715 and 1.2685 for 115 pips profit.
In general I am actually bullish in the short-term now looking for a small correction before resuming the overall downtrend and will keep my eye open for candlestick setups with good reward/risk ratios in CandlePro.
Caution advised for the EUR/USD today, folks. Happy pipping and stay safe.