Daily Outlook: Markets have been very volatile so far this week. Not in the where is this going?? since but literally big up swings and big downswings which is great for intraday tradersas long as a) your entry price is decent and b) your stops can handle the swings. Personally the smallest stop I will use is 35 pips and it is usually closer to 50 pips.
We are caught in two bearish channels right now - look at the orange channel lines and then the blue channel lines on my chart below. The orange is very visible on 4h and 1h charts, the blue lines are more visible on daily and weekly charts. Given the volatile nature of the pair at the moment I will wait for a bit of a retracement before entering short again, ideally in the area of 1.3300.
Trading Idea: Looking for short opportunities near the top of the bearish channel (around 1.3300). From 1.3300 short targets are 1.3270, 1.3240, 1.3210 and 1.3180 (for 120 pips profit). A more aggressive trade I will look for will be single lot shorts off of good bearish candlesticks between here and 1.3300 - I am not looking for any bullish setups right now.
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