Daily Outlook: Booked solid profits yesterday in all directions yesterday (entitled Closing the Gap :) as the sustained break below rising trend support we were tracking (third yellow line from the right) led to a nice 70+ drop, which then produced the falling trend resistance we were watching as part of the primary trade - leading to a 150 pip rise which did indeed close the gap and hit all of our targets. The pair basically collapsed after the gap was closed, dropping over 270 pips over the next 12 hours as traders rushed to take profit and abandoned their longs.
It was a similar story for almost all other pairs (other pairs are analyzed similar to this daily signal in PRO analysis, found in your dashboard), except for UJ which we had already booked some profit on.
We are looking for more drop today and our trades will primarily focus on opportunities to get short, which on the 1h timeframes currently revolves around the descending channel (continuation pattern) shown in blue above.
Trading Idea: Primary trade is a short on a rally to the top of the channel (currently at 1.3550 and dropping fast) with CandlePRO confirmation on any timeframe and targets at 3525, 3500, 3475 and 3450 for 100 pips profit.
We will look to get long on a sustained break above 3570 (if bulls can muster up the strength) which would be a topside break of the descending channel with targets at 3590 (tight), 3615, 3645 and 3675 for 105 pips potential. If we do see this rally we will look to close and reverse-short around 3630-3650 with candlestick confirmation or on a downside break of the new rising trend support when it develops.
We will add a short on a sustained break below 3500 as well, targeting 3400 in 25 pip chunks, but because the pair is looking oversold we will keep it to a single lot and move our SL early and often.