Daily Outlook: Pair is teetering on the edge of a cliff right now, on one hand it is having difficulty finding buyers below the scary 1.31, while on the other hand the short term trend is up and investors seem much more risk-friendly than they did just a few months ago. This has shown itself on the charts as a bearish doji signal Tuesday and a bearish-looking candle yesterday (body was a bit too big for a doji - it still has a bearish wick though).
Where does that leave us, the lowly day traders? Personally I still have my short open from yesterday (1.3015 area) with a target down to the 1.2815 support, but that is not an intraday trade and may take a bit to unfold (if it unfolds at all).
Trading Idea: Because yesterday hardly moved my signals will be identical:
1.2950 is today’s key level – I am bullish above and bearish below. Primary trade will be long near 1.2950 support with targets at 1.2975, 1.30, 1.3030 and 1.3060 for110 pips profit.
An aggressive short would be to sell on a sustained break below 1.2950 on the 4h charts, with targets down to 1.2915 and 1.2815 for 135 pips profit.
Recap: No signal was tripped yesterday.