Daily Outlook: Since its Friday (probably the worst day of the week to trade, at least for me) I will not be trading, but I still wanted to offer my analysis and a trading idea or two for any brave souls out there. First off let me bring your attention to the daily chart for today (top right, click to make it bigger). As you can see we've had a pretty clear downtrend in the medium-term since early December. We are currently in a bullish correction pattern (channel in between the blue lines, red support trend is possible support). This is why I check the daily analysis as part of my trade plan every day: 1) to see if there were any obvious candlestick patterns that might give an indication to the next day's direction and 2) to look at the overall pattern. All those little red lines in there are horizontal support/resistance lines on the 1-hour charts - they don't seem as sturdy on the daily charts do they?
More to the point for today is that we are just hovering around that bottom rising trend support line right now. Which gives us to clear trades: a long on confirmation signal if price fails to break 1.3590 again or a short if we have a sustained break below 1.3585 (I look for a close on the 1h or 4h charts).
Trading Idea: Long on another failure of 1.3590 with targets at 1.3620, 1.3650, 1.3690. Short on a sustained break of 1.3580 with targets at 1.3555, 1.3530 and 1.3505. Reminder - I'm not trading as its Friday and I'm looking forward to a three-day weekend ;). Happy pipping!