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Daily Outlook: Our short from 3660 yesterday was stopped at break-even after getting 35 pips in the black. Price has been very volatile recently, with clear trends a bit hard to come by, so we did what we always do in those situations: backed up to the daily charts to get some perspective.
As you can see there still is some good bearish pressure on the pair in the form of a falling trend resistance line that we get by connecting the highs from Feb 2 to the highs from Nov 4 of last year. Looking at this strong daily resistance also gives us a clear S/R breakout setup to trade off of: short below, long above - one of our favorite setups. This resistance line can currently be found around 1.3760 and we would love to go short around 3730-50 on a strong CP signal, but will stop-and-reverse on a sustained break above 3760.
Trading Idea: Primary trade is a short around 3730-3750 on a strong CP signal with targets at 3735, 3705, 3670 and 3640 for ~100 pips.
As a secondary trade will will look to go long above 3760 on a sustained break and then a bullish CP signal.